Sharekhan Lists 4 Stocks From Logistics & Construction Sectors With "Buy" Call For Strong Upside

Logistics and Infrastructure lagged marginally on net earnings due to OPM pressure

Logistics Sector - The logistics sector reported in-line net revenues (up 12.2% y-o-y) led by strong revenue growth in Mahindra Logistics and Transport Corporation. The OPM (down 39 bps y-o-y) and net profit (flat y-o-y) were marginally below estimates. Transport Corporation outperformed while express players (Mahindra Logistics, Gati and TCI Express) were disappointed due to weak demand and highly competitive environment.

Infrastructure Sector - The infrastructure sector reported revenue growth of 7.4% y-o-y, OPM expansion of 64 bps y-o-y and net earnings growth of 34.1% y-o-y although the same were marginally short of our expectations. Both KNR and PNC Infratech lagged in terms of execution, OPMs and net earnings. However, they retained order inflow targets for FY2023 with the expectation of strong project awarding during March 2023

1. TCI Express

Sharekhan has a "Buy" on the stock of TCI Express with a target price of Rs 2,070 apiece, implying a potential upside of 30% from its current level. "We have marginally lowered our estimates for FY2023-FY2025," Sharekhan has said.

The stock's current market price is Rs 1,598.30 apiece. It has given 5.14% positive return in 1 week. In 1 year it declined 6.23%. However, it gained 78.8% in 3 years and 207.31% in 5 years.

2. Transport Corporation of India (TCI)

The brokerage assigned a "buy" on the stock of TCI with a target price of Rs 785 apiece. It claims a 21% upside from its current level, considering the given target price. "We have marginally revised our estimates upwards for FY2023- FY2025, factoring in higher revenue growth in freight and SCM businesses," Sharekhan has said.

The current market price of TCI is Rs 650.75 apiece. It gained 1.24% in 1 week, and 5.28% in 1 month, respectively. It gained 12.06% in 1 year, 150.38% in 3 years and 130.35% in 5 years, respectively.

3. KNR Constructions

The brokerage has a "buy" on the stock of KNR Construction with a target price of Rs 310 apiece, implying a potential return of 25%. "We have fine-tuned our estimates for FY2023-FY2025," Sharekhan has said.

The stock last traded at Rs 249.15 apiece. Stock declined 1.64% in 1 week. It has fallen 15.8% in 1 year. However, it gained 78.92% in 3 years and 69.49% in 5 years, respectively.

4. PNC Infratech

Sharekhan has a "Buy" on PNC Infratech with a target price of Rs 390 apiece, implying a potential upside of up to 33% from its current level. "We have fine-tuned our estimates for FY2023-FY2025," the brokerage has said.

The stock is currently trading at Rs 293.95 apiece. The stock has fallen 6.73% in 1 week. It gained 12.22% in 1 year, 51.29% in 3 years and 76.44% in 5 years, respectively.

Disclaimer

The stocks have been picked from the brokerage report of Sharekhan. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.