TCI EX­PRESS

Flash News Investment - - DIWALI RECOMENDATION -

A com­pany which de­merged from Trans­port Cor­po­ra­tion of In­dia and got listed in De­cem­ber 2016, TCI Ex­press pro­vides sur­face, do­mes­tic and in­ter­na­tional air, pri­or­ity, e-com­merce and re­verse ex­presses. Its TTM rev­enue and PAT posted a growth of 3.5% and 8%, re­spec­tively, as per FY17 re­sults. Re­cently, the com­pany has planned to invest Rs 400 crore of capex for ex­pan­sion over five years and for re­ju­ve­na­tion of its ex­ist­ing 28 sort­ing cen­tres. With this, the com­pany sees its rev­enue scal­ing up to nearly Rs 4,000 crore over FY17-22. The growth in SMEs and the shifted fo­cus from B2C to B2B in lo­gis­tics would help the com­pany grow its topl ine in the near fu­ture.

The stock, af­ter reg­is­ter­ing a high of Rs 667 in the month of July 2017, en­tered into a cor­rec­tive phase and made a low of Rs 459. At present, the stock wit­nessed a break­out of downward slop­ing trend line o n the daily time­frame. This break­out re­sulted in a strong up move in the stock price, along with above av­er­age vol­umes. The av­er­age 21-day vol­ume stands around 36,000 shares; but the break­out was seen with over 3.90 lakh shares , which sug­gests strong par­tic­i­pa­tion. Among os­cil­la­tors, the daily 14-pe­riod RSI is in ris­ing tra­jec­tory and is trad­ing in bullish zone.

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