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March 10, 2018 Analyst: Depesh Kashyap [email protected](+91-7228934327) Page 1 of 10
Before reading this report, you must refer to the disclaimer on the last page.
TCI Express Absolute : NA
Relative : NA
Management meet note NOT RATED
The Road has just begun Logistics
© 2018 Equirus All rights reserved
Rating Information
Price (Rs) 463
Target Price (Rs) NA
Target Date NA
Target Set On NA
Implied yrs of growth (DCF) NA
Fair Value (DCF) NA
Fair Value (DDM) NA
Ind Benchmark SPBSMIP
Model Portfolio Position NA
Stock Information
Market Cap (Rs Mn) 17,726
Free Float (%) 33.9%
52 Wk H/L (Rs) 667/299.1
Avg Daily Volume (1yr) 44,998
Avg Daily Value (Rs Mn) 22.8
Equity Cap (Rs Mn) 77
Face Value (Rs) 2
Bloomberg Code TCIEXP IN
Ownership Recent 3M 12M
Promoters 66.1% 0.0% 0.0%
DII 10.2% -0.1% 0.7%
FII 3.2% 0.2% 1.2%
Public 20.5% -0.2% -1.9%
Price % 1M 3M 12M
Absolute -6.6% -17.7% 53.7%
Vs Industry -2.7% -11.5% 34.3%
GTIC -13.3% -26.6% -21.7%
BDE -6.5% -2.1% -5.5%
We recently met the management of TCI Express (TCI XPS) to understand the overall
growth potential of the Indian logistics sector and the company in particular.
Established in 1996 as one of the foremost divisions of Transport Corporation of India
Limited (TCIL), TCI XPS came to light after its demerger from TCI in 2016. The
company’s revenue/EBITDA grew at 8%/10% CAGR over FY13-FY17, and over 9MFY18,
revenue/EBITDA growth accelerated to 16%/44% yoy as EBITDA margins expanded
190bps yoy. With a clear focus on being asset-light, TCI XPS has strong ROEs of 29%,
Net D/E at 0.1x and is currently trading at 26x/21x on FY19/FY20 consensus EPS
estimates. We do not have a rating on the stock but in our view, it’s a good play on
evolving logistics industry post GST.
Organized/bigger players to benefit post GST, E-way Bill rollout: Post GST, most
businesses are redesigning their supply chains based on efficiencies instead of
state-wise tax structures. Industry expects consolidation of warehouses ahead,
which may necessitate more timely delivery of goods and hence benefit the express
logistics sector. Moreover, the Electronic way (E-way) bill rollout expected on 1
Apr’18 will require a robust IT infrastructure, leading to a business shift towards
organized players.
Set to be a major beneficiary of sector tailwinds: TCI XPS has grown its revenues
at 8% CAGR over FY13-FY17. The company saw flattish growth in FY16 when it
decided to drop low-margin customers; however, revenue growth picked up to 14%
in FY17 and was even better at 16% yoy in 9MFY18. Going forward, as demand for
express logistics increases and business shifts from unorganized to organized players,
TCI XPS shall grow at a 15% CAGR over the next 3-4 years in line with the industry.
Margin profile to improve further with operational efficiencies, lower rental costs:
TCI XPS has had a much better margin profile vs. peers in the logistics business due
to its sole focus on express logistics. The company is confident of improving EBITDA
margins by 100bps every year for the next 3-4 years. Of its 28 sorting centers, TCI
XPS owns only 8 while the rest are on lease. Management intends to own more
sorting centers in the coming years and also increase the size of its sorting centers,
which should lead to better operational efficiencies and bring down rental costs. Valuation: TCI XPS currently trades at 26x/21x on FY19/FY20 consensus EPS
estimates which is at 10-15% discount to industry average.(Exhibit 16)
Standalone Financials
Rs. Mn YE Mar FY15A FY16A FY17A
Sales 6,586 6,632 7,539
EBITDA 516 544 663
Depreciation 60 58 43
Interest Expense 58 53 19
Other Income 3 2 14
Reported PAT 263 283 407
Recurring PAT 263 283 407
Total Equity 1,154 1,230 1,600
Gross Debt 6 403 310
Cash 71 109 88
Rs Per Share FY15A FY16A FY17A
Earnings 6.9 7.4 10.6
Book Value - - 42
Dividends - - 0.0
FCFF - - 14.5
P/E (x) 67.5 62.7 43.5
P/B (x) - - 11.1
EV/EBITDA (x) 34.2 33.2 27.1
ROE (%) 45% 24% 29%
Core ROIC (%) 51% 22% 23%
EBITDA Margin (%) 8% 8% 9%
Net Margin (%) 4% 4% 5%
TCI Express Management meet note Not Rated
March 10, 2018 Analysts: Depesh Kashyap [email protected](+91-7228934327) Page 2 of 14
Industry overview
Exhibit 1: Logistics account for ~13% of GDP for India vs. ~18% for China
Source: Company, Equirus Securities
Exhibit 2: In India, transportation medium break-up is heavily skewed towards roads
Source: Company, Equirus Securities
Exhibit 3: Key segments of the Indian logistics Industry
Source: FSC Company Presentation, Equirus Securities; # Part of overall road transport industry
Exhibit 4: Express services have very attractive industry positioning
Source: FSC Company Presentation, A&M Industry report, Equirus Securities
13%
18%
8.5%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
India China USA
$bn 2015 nominal GDP at current USD Logistics as a Percentage of GDP (%)
60%
32% 8%
0.1%
Road Rail Water Air
5900
340
245
235
200
110
100#
Road Transport
Others
Container Logsitics (CFS,ICDs,CTO)
Freight Fwding. / NVOCC
Agri Warehousing
Cold Chain
Contract Logistics
Express Services
Market Size (Rs bn)
2065
CAGR %(FY12 –17)
14%
17%
15%
13%
7%
15%
-
14%
TCI Express Management meet note Not Rated
March 10, 2018 Analysts: Depesh Kashyap [email protected](+91-7228934327) Page 3 of 14
Exhibit 5: Various modes and services offered by the logistics industry
Source: Industry, Equirus Securities
TCI Express Management meet note Not Rated
March 10, 2018 Analysts: Depesh Kashyap [email protected](+91-7228934327) Page 4 of 14
Company overview
TCI (TRPC IN) was incorporated in 1958 as a ‘One Man, One Truck, One Office’ company.
Today, it is a leading integrated supply chain and logistics solutions provider and a
pioneer in India’s cargo transportation space. TCI XPS is the express arm of the TCI Group
carved out with mirror image division from Transport Corporation of India (TCI).
TCI XPS, established in 1996 as one of the foremost divisions of TCI, is an express
distribution specialist offering a single window solution to clients through assured door-
to-door courier and express cargo services for time-sensitive delivery. TCI XPS was split
to create a different identity given that TCI primarily focused on traditional
transportation and clients feared of being charged more unnecessarily.
Exhibit 6: Key differentiators between Express and FTL
Key Differentiators Express FTL
Operating model Plying on key routes Catering to towns/rural locations
Key presence Metros and tier-1 cities Tier-2 to tier-4 cities
Key industrial sectors IT & Mobile, FMCG, Apparel, Pharma Textiles (Yarn/Fabric), Agro, Auto
Pricing High Low
Cash conversion cycle High Low
Time sensitive Yes No
Truck fill factor Low High
Competition Route specific Regional
Source: Company, Equirus Securities
Asset-light business model
TCI XPS has a clear focus on express delivery of high-value goods in a time-sensitive
manner; it does not intend to enter the supply chain management part of the business in
which TCIL is present. With a clear vision of being asset–light, TCI XPS does not own a
single truck and its entire fleet is managed by vendors. To avoid vendor concentration
risk, the company has 4,000 vehicles managed by 1,500 vendors, implying that it does not
source more than 2-3 vehicles from a single vendor. Also, on every route, vehicles are
managed by at least 2-3 vendors to avoid any disruptions. Similarly, in terms of
customers, no single client contributes more than 1% of the company’s revenue.
TCI XPS has majorly focussed on the B2B segment (95% of revenue) rather than the B2C
segment (5% of revenue).
Exhibit 7: Service-wise revenue mix (FY17)
Source: Company, Equirus Securities
B2C service offerings (5% of FY17 revenue)
In this segment, TCI XPS has customers like Shopclues, Naptol, and Homeshoppe 18.
According to management, the company’s main focus is on tier II/III towns instead of
tier-1 cities where competition is stiff. While this segment should see good growth off a
low base, management does not plan a major scale-up here as such a move would hurt
profitability. Currently, TCI XPS generates 15-20% EBITDA margins in this segment due to
focus on fewer streets/pin-codes and better service offerings to gain business.
Competitors, on the other hand, have deployed delivery boys on several locations but
their trips are fewer, leading to lower overall profitability.
B2B service offerings (95% of FY17 revenue)
Majority of TCI XPS’s revenues come from the surface express segment, with air express
forming less than 10% of its revenue. As per management, since distances are not that
large in India, roads are the most preferred mode of transportation, more so since air
transportation is very expensive. However, the company wants to grow its air express in
the international market because of better profitability. Unlike Blue Dart, TCI XPS has no
intention of owning aircrafts but would rather use up space within aircraft carriers.
95%
5%
B2B
B2C
TCI Express Management meet note Not Rated
March 10, 2018 Analysts: Depesh Kashyap [email protected](+91-7228934327) Page 5 of 14
Exhibit 8: Product-wise revenue mix (%)
Source: Company, Equirus Securities
Exhibit 9: Industry-wise revenue mix (FY17)
Source: Company, Equirus Securities
As depicted in Exhibit 9, around 50% of revenues come from SMEs and the remaining 50%
from a mix of large corporates across sectors. According to management, within SME, the
industry-wise break-up is similar as in large corporates. While larger clients provide
volume visibility to the company and pay on time, they are price sensitive and hence
fetch lower margins. In contrast, SMEs pay better rates and generate higher margins.
Presence across states provides strong competitive edge
TCI XPS provides pick-up and delivery in 40,000 locations across India, which it manages
through its multiple sorting centres and a widespread branch network.
Branches
TCI XPS currently has around 550 branches across India and all branches are on lease.
Parcels are picked up from the customer’s factory/office and delivered to the nearest
branch. Parcel collection is mainly done by various vendors and the company’s own sales
force called Business Associates (BA). To incentivise BAs to reach out to more number of
customers, they are paid a certain proportion of the revenue they bring to the company.
Going forward, TCI XPS wants to densify its branch network i.e. to open more number of
branches in a particular area, so that they can cater to as many customers as possible.
Sorting centres
TCI XPS currently has 28 sorting centres across India, of which 8 are company-owned and
the rest are on lease. These are larger centres where parcels are brought from various
branches or customers (if nearby), and based on their delivery location and time, are
transported to the destination sorting centres. From destination sorting centres, the
parcel is delivered to the destination branch and then to customers, or directly to
customers, if nearby.
Going forward, the company plans to own more of its sorting centres as well as increase
the area of its sorting centres.
Vendors
TCI XPS does not own a single truck and its entire fleet is managed by vendors. The
company operates 4,000 vehicles, of which 1400 are inter-state, 900 intra-state and
1,700 intra-city vehicles. To avoid any vendor concentration risk, all 4,000 vehicles are
managed by 1,500 vendors, implying that the company does not take more than 2-3
vehicles from a single vendor. Also, on every route, it makes sure that vehicles are
managed by at least 2-3 vendors to avoid any business disruption.
TCI XPS pays vendors on per km basis and the risk of filling the trucks lies on the
company.
86%
1% 8% 5%
Surface Express
Air Intl Express
Air Domestic Express
E-com Express
50%
13%
11%
7%
6%
6%
7% SME
Automotive
Pharma
Engineering
Telecom
Consumer Durables
Lifestyle
TCI Express Management meet note Not Rated
March 10, 2018 Analysts: Depesh Kashyap [email protected](+91-7228934327) Page 6 of 14
Exhibit 10: Simplified workflow for TCI express
Source: Company, Equirus Securities
Financial performance
Revenue to grow at a 15% CAGR over FY18E-20E
TCI XPS has grown its revenues at a 9% CAGR over FY12-FY17. The company saw flattish
growth in FY16 when it decided to drop low-margin customers; however, revenue growth
picked up to 14% in FY17 and was even better at 16% in 9MFY18. Going forward, as
demand for express logistics increases and business shifts from unorganized to organized
players, TCI XPS expects to grow at a 15% CAGR over the next 3-4 years.
Exhibit 11: Revenues have grown at a ~9% CAGR in the last 5 years
Source: Company, Equirus Securities
EBITDA margins expected to expand 300bps over next three years
Due to its sole focus on the express delivery business, TCI XPS has a much better margin
profile than other players in the logistics business. The company is confident of improving
its EBITDA margins by 100bps every year for the next 3-4 years. To expand its margins,
the company is taking the following steps:
a. Owning larger sorting centers to improve efficiencies
Of its 28 sorting centers, TCI XPS owns only 8 while the rest are on lease; it pays 3%
of sales as rental costs. Going ahead, the company plans to own more sorting centers
and also increase their size so as to cater to a larger number of neighboring branches
and bring in operational efficiencies. TCI XPS will also save on rental costs, which
should aid EBITDA margins.
b. Setting up a base rate for all branches
Earlier, depending on the size of clients and competitive pressures, the company’s
branches offered different discounts to customers, hurting branch profitability. Now
the company has established a base rate below which no branch can negotiate with
customers.
Exhibit 12: EBITDA margins have been consistently improving for the past 3 years
Source: Company, Equirus Securities
3,463 3,860
4,593 4,950
5,557 6,000
6,586 6,632
7,552
11%
19%
8%
12%
8%
10%
1%
14%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Net Sales (Rs. mn) Growth (yoy%)
287 349 405 435 455 483 519 546 676
8.3%
9.0%
8.8% 8.8%
8.2%
8.0%
7.9%
8.2%
9.0%
7%
7%
8%
8%
8%
8%
8%
9%
9%
9%
9%
0
100
200
300
400
500
600
700
800
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
EBITDA (Rs. mn) EBITDAM (%)
TCI Express Management meet note Not Rated
March 10, 2018 Analysts: Depesh Kashyap [email protected](+91-7228934327) Page 7 of 14
Exhibit 13: Net profit has grown at a CAGR of ~15% in last 5 years
Source: Company, Equirus Securities
Cash conversion cycle is around 30 days
TCI XPS does not maintain any inventory. Its receivable days have been in the range of
50-55 but vary from client to client. For 10-12% of clients, the company typically collects
advance payments. From most SME customers, payments generally come back within 7
days; however, for bigger clients, payments get delayed to around 60-65 days, leading to
an overall increase in debtor days. Payable days have been in the range of 16-20, leading
to a cash conversion cycle of around 30 days.
Dividend payouts to remain steady
TCI XPS aims to maintain a dividend payout ratio in the range of 15-20%, in line with
other group companies.
Capex
TCI XPS intends to maintain its asset-light model and has no plans to own any vehicle.
However, the company is looking to densify its branch network, from 550 branches
currently to over 1000 branches in the next 3-4 years. Further, at present, it has 28
sorting centers, of which 8 are owned and the rest are on lease. The company doesn’t
want to increase the number of sorting centers but intends to own more sorting centers
in major cities. Also, it wants to increase the size of sorting centers so as to cater to
more number of branches. Overall Capex spend is expected to be Rs 600mn pa over the
next 3-4 years. As per management, this will bring in operational efficiencies and
decrease rental costs, in turn aiding profitability.
Return ratios expected to remain strong
RoCE declined in FY15 and FY16 as assets were transferred from parent to TCI XPS, which
led to an optical decline in return ratios. The company is confident of clocking 40%+ RoCE
going ahead.
Exhibit 14: Return ratios at a healthy level
Source: Company, Equirus Securities, ROCE is pre-tax
125
174 197 206
239 256 265
285
407
172
222
254 259 284
300 325
343
450
0
50
100
150
200
250
300
350
400
450
500
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Net Profit (Rs. mn) Cash Profit (Rs. mn)
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
RoE (%) RoCE (%)
TCI Express Management meet note Not Rated
March 10, 2018 Analysts: Depesh Kashyap [email protected](+91-7228934327) Page 8 of 14
Exhibit 15: Comparing parameters of industry-listed players
Source: Company, Equirus Securities
TCI Express Management meet note Not Rated
March 10, 2018 Analysts: Depesh Kashyap [email protected](+91-7228934327) Page 9 of 14
Exhibit 16: Relative Valuation vs. peers
Company name Price
(Rs)
M Cap
(Rs. mn) Sales CAGR (%) EPS CAGR (%) Net D/E P/E EV/EBITDA ROE (%) ROIC (%)
FY17-20E FY17-20E FY17 FY18E FY19E FY20E FY18E FY19E FY20E FY18E FY19E FY20E FY17
Mahindra Logistics 473.2 33,661 22.3% 41.7% -0.2 50.9 37.5 25.7 29.7 21.8 15.5 18% 21% 22% 12%
VRL Logistics 402.7 36,744 12.1% 43.5% 0.2 29.2 22.4 17.6 14.7 11.6 9.3 18% 21% 23% 10%
Gati Ltd 101.1 10,954 10.4% 7.6% 0.6 17.0 17.8 24.1 10.7 9.4 9.3 10% 9% 7% 5%
Blue Dart 4229.1 1,00,348 8.8% 21.2% 0.5 67.4 50.7 40.3 29.6 24.3 19.6 28% 33% 34% 18%
TCI Express 463.0 17,726 17.3% 28.0% 0.1 32.1 26.5 20.8 21.0 16.6 13.0 29% 27% 28% 23%
Median
12.1% 28.0% 0.2 32.1 26.5 24.1 21.0 16.6 13.0 18% 21% 23% 12%
Source: Bloomberg, Equirus Securities
TCI Express Management meet note Not Rated
March 10, 2018 Analysts: Depesh Kashyap [email protected](+91-7228934327) Page 10 of 14
Exhibit 17: Key Financial Parameters
Rs. mn FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Total Income 3,463 3,860 4,593 4,950 5,557 6,000 6,586 6,632 7,552
Growth (yoy %)
11% 19% 8% 12% 8% 10% 1% 14%
EBIDTA 287 349 405 435 455 483 519 546 676
EBITDAM (%) 8.3% 9.0% 8.8% 8.8% 8.2% 8.0% 7.9% 8.2% 9.0%
Finance Cost 51 38 54 64 56 51 58 53 19
Depreciation & Amortisation 47 48 56 53 44 44 60 58 43
Profit before Tax & Exceptional Items 189 263 295 318 354 387 402 435 614
Taxes 64 89 98 99 115 132 137 151 207
Net profit 125 174 197 206 239 256 265 285 407
Net profit margin (%) 3.6% 4.5% 4.3% 4.2% 4.3% 4.3% 4.0% 4.3% 5.4%
Cash profit 172 222 254 259 284 300 325 343 450
Dividend per share 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.8
EPS (Rs.) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 10.6
Gross Block 447 488 490 382 366 353 388 806 1,177
Net Block 241 243 240 219 195 170 146 638 984
Share Capital 0 0 0 0 0 0 0 76 77
Net Worth 801 828 820 856 935 1,020 1,154 1,230 1,600
Average Net Worth 783 814 824 838 896 977 1,087 1,192 1,415
Total Debts 54 64 49 27 9 11 6 403 310
Capital Employed 878 916 892 879 940 1,023 1,157 1,259 1,635
Avg. Capital Employed 843 897 904 886 910 981 1,090 1,208 1,447
Return on net worth 15.6% 21.0% 24.0% 24.1% 25.6% 25.1% 23.0% 23.1% 25.4%
Return on Capital Employed 28.5% 33.6% 38.6% 43.1% 45.1% 44.7% 42.1% 40.4% 43.8%
Debt Equity Ratio (times ) 0.1 0.1 0.1 0.0 0.0 0.0 0.0 0.3 0.2
Interest Cover (times ) 5.7 9.2 7.6 6.9 8.1 9.4 9.0 10.4 36.1
Book Value per share (in Rs.) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 41.8
TCI Express Management meet note Not Rated
March 10, 2018 Analysts: Depesh Kashyap [email protected](+91-7228934327) Page 11 of 14
Historical Standalone Financials
P&L (Rs Mn) FY15A FY16A FY17A
Balance Sheet (Rs Mn) FY15A FY16A FY17A
Cash Flow (Rs Mn) FY15A FY16A FY17A
Revenue 6,586 6,632 7,539 Equity Capital 0 76 77 PBT
614
Op. Expenditure 6,070 6,088 6,876 Reserve 1,154 1,154 1,523 Depreciation
43
EBITDA 516 544 663 Net-worth 1,154 1,230 1,600 Others
20
Depreciation 60 58 43 Long Term Debt 6 403 310 Taxes Paid
201
EBIT 456 486 619 Def. Tax Liability 0 24 29 Change in WC
42
Interest Expense 58 53 19 Account Payables 227 232 378 Operating C/F
518
Other Income 3 2 14 Other Current Liabilities 57 97 206 Capex
-379
PBT 402 435 614 Total Liabilities & Equity 1,443 1,985 2,524 Change in Invest
0
Tax 139 153 207 Net Fixed Assets 146 637 984 Others
-13
Recurring PAT 263 283 407 Capital WIP 0 91 79 Investing C/F
-392
Extraordinaries 0 0 0 Investment 34 28 41 Change in Debt
-92
Reported PAT 263 283 407 Inventory 0 0 0 Change in Equity
0
EPS (Rs) 6.9 7.4 10.6 Account Receivables 1,015 1,054 1,149 Others
-56
DPS (Rs) 0.0 0.0 0.0 Other Current Assets 177 65 183 Financing C/F
-148
CEPS (Rs)
11.8 Cash 71 109 88 Net change in cash
-21
FCFF (Rs)
3.6 Total Assets 1,443 1,985 2,524
RoE (%)
29%
BVPS (Rs)
41.8
Non-cash Working Capital 909 791 748
RoIC (%)
23%
Sales Growth (%)
1% 14% Cash Conv. Cycle 50.4 43.5 36.2 Core RoIC (%)
23%
PAT Growth (%)
8% 44% WC Turnover 7.2 8.4 10.1 P/E
43.5
EPS Growth (%)
8% 44% FA Turnover 45.1 9.1 7.1
P/BV
11.1
EBITDAM (%) 8% 8% 9% D/E 0.0 0.3 0.2 EV/EBITDA
27.1
PATM (%) 4% 4% 5% Net D/E -0.1 0.2 0.1 EV/Sales
2.4
Tax Rate (%) 35% 35% 34% Interest Cover 7.9 9.3 33.1 Div. Yield (%)
0%
*TCI Express got demerged from TCI in 2016
TCI Express Management meet note Not Rated
March 10, 2018 Analysts: Depesh Kashyap [email protected](+91-7228934327) Page 12 of 14
Equirus Securities
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Varun Baxi [email protected] 91-79-61909527
Vikas Jain [email protected] 91-79-61909531
Rating & Coverage Definitions: Absolute Rating • LONG : Over the investment horizon, ATR >= Ke for companies with Free Float market cap >Rs 5 billion and ATR >= 20% for rest of the companies • ADD: ATR >= 5% but less than Ke over investment horizon • REDUCE: ATR >= negative 10% but <5% over investment horizon • SHORT: ATR < negative 10% over investment horizon Relative Rating • OVERWEIGHT: Likely to outperform the benchmark by at least 5% over investment horizon • BENCHMARK: likely to perform in line with the benchmark • UNDERWEIGHT: likely to under-perform the benchmark by at least 5% over investment horizon Investment Horizon Investment Horizon is set at a minimum 3 months to maximum 18 months with target date falling on last day of a calendar quarter. Lite vs. Regular Coverage vs. Spot Coverage We aim to keep our rating and estimates updated at least once a quarter for Regular Coverage stocks. Generally, we would have access to the company and we would maintain detailed financial model for Regular coverage companies. We intend to publish updates on Lite coverage stocks only an opportunistic basis and subject to our ability to contact the management. Our rating and estimates for Lite coverage stocks may not be current. Spot coverage is meant for one-off coverage of a specific company and in such cases, earnings forecast and target price are optional. Spot coverage is meant to stimulate discussion rather than provide a research opinion.
Registered Office:
Equirus Securities Private Limited
Unit No. 1201, 12th Floor, C Wing, Marathon Futurex,
N M Joshi Marg, Lower Parel,
Mumbai-400013.
Tel. No: +91 – (0)22 – 4332 0600
Fax No: +91- (0)22 – 4332 0601
Corporate Office:
3rd floor, House No. 9,
Magnet Corporate Park, Near Zydus Hospital, B/H Intas Sola Bridge,
S.G. Highway Ahmedabad-380054
Gujarat
Tel. No: +91 (0)79 - 6190 9550
Fax No: +91 (0)79 – 6190 9560
TCI Express Management meet note Not Rated
March 10, 2018 Analysts: Depesh Kashyap [email protected](+91-7228934327) Page 13 of 14
© 2018 Equirus Securities Private Limited. All rights reserved. For Private Circulation only. This report or any portion hereof may not
be reprinted, sold or redistributed without the written consent of Equirus Securities Private Limited
Analyst Certification
I, Depesh Kashyap, author to this report, hereby certify that all of the views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also
certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
Disclosures
Equirus Securities Private Limited (ESPL) having Corporate Identification Number U65993MH2007PTC176044 is registered in India with Securities and Exchange Board of India (SEBI) as a trading member on the
Capital Market (Reg. No. INB231301731), Futures & Options Segment (Reg. No.INF231301731) of the National Stock Exchange of India Ltd. (NSE) and on Cash Segment (Reg. No.INB011301737) of Bombay Stock
Exchange Limited (BSE).ESPL is also registered with SEBI as Research Analyst under SEBI (Research Analyst) Regulations, 2014 (Reg. No. INH000001154), as a Portfolio Manager under SEBI (Portfolio Managers
Regulations, 1993 (Reg. No.INP000005216) and as a Depository Participant of the Central Depository Services (India) Limited (Reg. No.IN-DP-324-2017). There are no disciplinary actions taken by any regulatory
authority against ESPL. ESPL is a subsidiary of Equirus Capital Pvt. Ltd. (ECPL) which is registered with SEBI as Category I Merchant Banker and provides investment banking services including but not limited to
merchant banking services, private equity, mergers & acquisitions and structured finance.
As ESPL and its associates are engaged in various financial services business, it might have: - (a) received compensation (except in connection with the preparation of this report) from the subject company for
investment banking or merchant banking or brokerage services in the past twelve months;(b) managed or co-managed public offering of securities for the subject company in the past twelve months; or (c) have
received a mandate from the subject company; or (d) might have other financial, business or other interests in entities including the subject company (ies) mentioned in this Report. ESPL & its associates, their
directors and employees may from time to time have positions or options in the company and buy or sell the securities of the company (ies) mentioned herein. ESPL and its associates collectively do not own (in
their proprietary position) 1% or more of the equity securities of the subject company mentioned in the report as the last day of the month preceding the publication of the research report. ESPL or its Analyst or
Associates did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither ESPL nor
Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or
brokerage service transactions. ESPL has not been engaged in market making activity for the subject company.
The Research Analyst engaged in preparation of this Report:-
(a) has not received any compensation from the subject company in the past twelve months; (b) has not managed or co-managed public offering of securities for the subject company in the past twelve months;
(c) has not received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months; (d) has not received any compensation for products
or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months; (e) has not received any compensation or other benefits from the
subject company or third party in connection with the research report; (f) might have served as an officer, director or employee of the subject company; (g) is not engaged in market making activity for the
subject company.
This document is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution,
publication, availability or use would be contrary to law, regulation or which would subject ESPL and affiliates to any registration or licensing requirement within such jurisdiction. The securities described herein
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This document has been prepared solely for information purpose and does not constitute a solicitation to any person to buy, sell or subscribe any security. ESPL or its affiliates are not soliciting any action based
on this report. The information and opinions contained herein is from publicly available data or based on information obtained in good faith from sources believed to be reliable but ESPL provides no guarantee as
to its accuracy or completeness. The information contained herein is as on date of this report, and is subject to change or modification and any such changes could impact our interpretation of relevant
information contained herein. While we would endeavour to update the information herein on reasonable basis, ESPL and its affiliates, their directors and employees are under no obligation to update or keep the
information current. Also there may be regulatory, compliance, or other reasons that may prevent ESPL and its group companies from doing so. This document is prepared for assistance only and is not intended
to be and must not alone be taken as the basis for an investment decision. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an
investment in the securities of companies referred to in this document including the merits and risks involved. This document is intended for general circulation and does not take into account the specific
investment objectives, financial situation or particular needs of any particular person. ESPL and its group companies, employees, directors and agents accept no liability, and disclaim all responsibility, for the
consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. ESPL/its affiliates do and seek to do business with
companies covered in its research report. Thus, investors should be aware that the firm may have conflict of interest.
TCI Express Management meet note Not Rated
March 10, 2018 Analysts: Depesh Kashyap [email protected](+91-7228934327) Page 14 of 14
A graph of daily closing prices of securities is available at http://www.nseindia.com/ChartApp/install/charts/mainpage.jsp and www.bseindia.com (Choose a company from the list on the browser and select the
“three years” period in the price chart).
Disclosure of Interest statement for the subject Company Yes/No If Yes, nature of such interest
Research Analyst’ or Relatives’ financial interest No
Research Analyst’ or Relatives’ actual/beneficial ownership of 1% or more No
Research Analyst’ or Relatives’ material conflict of interest No
Disclaimer for U.S. Persons
ESPL/its affiliates are not a registered broker–dealer under the U.S. Securities Exchange Act of 1934, as amended (the“1934 act”) and under applicable state laws in the United States. In addition Equirus is not a
registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the “Acts”), and under appl icable state laws in the United States.
Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by Equirus, including the products and services described herein are not available to or intended
for U.S. persons. The information contained in this Report is not intended for any person who is a resident of the United States of America or a resident of any jurisdiction, the laws of which imposes prohibition
on soliciting the securities business in that jurisdiction without going through the registration requirements and/ or prohibit the use of any information contained in this report. This Report and its respective
contents do not constitute an offer or invitation to purchase or subscribe for any securities or solicitation of any investments or investment services and/or shall not be considered as an advertisement tool. "U.S.
Persons" are generally defined as a natural person, residing in the United States or any entity organized or incorporated under the laws of the United States. US Citizens living abroad may also be deemed "US
Persons" under certain rules