ICICI Securities SOUNDS ALARM: TCI Express BUY Rating & ₹900 Target Price Revealed! Don't Miss This Logistics Gem!

ICICI Securities has maintained its BUY rating on TCI Express, setting a target price of INR 900 per share. The brokerage highlighted that TCI Express's Q2FY26 Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of INR 33.5 million was in line with market consensus. Volumes remained steady at 248 kilotons (kte), while EBITDA margin saw an improvement sequentially to 10.9% from 9.8% in Q1FY26, attributed to a 25 basis points price increase and effective cost management.

The company has expanded its network by adding 10 surface express branches and 25 rail network branches, leading to a capacity utilization increase to 83.5% from 82% in the previous quarter. TCI Express has invested INR 280 million in capital expenditure (capex) and plans to invest an additional INR 1.5 billion by the end of FY27. Management guidance for FY26 includes a 10% revenue growth, supported by an 8% volume increase and a 200 basis points price hike, with expectations of further EBITDA margin improvement.

Impact This research report from a reputable brokerage house, reiterating a BUY rating and a positive outlook, is likely to influence investor sentiment towards TCI Express. The clear growth drivers, expansion plans, and management's confidence can lead to increased investor interest and potentially drive the stock price towards the target of INR 900. Investors seeking exposure to the logistics sector may view this as a favorable investment opportunity. (Rating: 7/10)