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Shares of Zinka Logistics Solutions, the parent company of BlackBuck, jumped more than 2% at INR 412.10 apiece on the BSE
Brokerage JM Financial initiated a ‘buy’ rating on the company’s stock, betting on BlackBuck’s business future cash flow, along with a target price of INR 570
As of 12:23 PM, the company’s shares were up about 1.4% at INR 408.95 apiece on the BSE, compared to its last close of INR 403.35 per share
Shares of Zinka Logistics Solutions, the parent company of BlackBuck, jumped more than 2% at INR 412.10 apiece during the intraday trading on the BSE today (February 3).
This comes after brokerage JM Financial initiated a ‘buy’ rating on the company’s stock, betting on BlackBuck’s business future cash flow, along with a target price (PT) of INR 570.
As of 12:23 PM, the company’s shares were up about 1.4% at INR 408.95 apiece on the BSE, compared to its last close of INR 403.35 per share, on Saturday (February 1).
The market capitalisation of the company currently stands at INR 7,217.10 Cr.
The PT initiated by the brokerage indicates an upside of 41.3% from the previous session’s closing price.
JM Financial said that the logistics major continues to further gain market share driven by its strong sales team as well as word-of-mouth.
The brokerage acknowledged that the startup’s cost effective offering, and dependable service network are key moats in its core business.
JM Financial also said that it is confident the company is positioned to deliver early thirties medium-term growth rate driven by 16-18% growth in its larger businesses – Payments and Telematics, while also continuing to gain sustained market share in both the businesses.
However, over a month ago, global brokerage firm Morgan Stanley initiated coverage on BlackBuck with an ‘underperform’ tag, giving a target price of INR 450 per share, as it seemed critical of the stock’s 105% rally since its November 2024 listing.
BlackBuck’s stock made its debut in the exchanges on November 22, last year.
Shares of the Flipkart-backed company were listed at INR 280.90 on the NSE, a modest premium of 2.89% over the IPO issue price of INR 273, while on the BSE, the stock debuted at INR 279.05, a premium of 2.21%.
In terms of financial performance, it reported a net loss of INR 308.38 Cr from continuing operations, about 7.8X from INR 39.67 Cr loss it registered in the year-ago quarter. Meanwhile, its revenue from operations rose 56% to INR 98.77 Cr in Q2 FY25 from INR 63.37 Cr, a year ago.
Updated at 01:42 PM
