BlackBuck Shares Rally 5% To Hit Upper Circuit 

Shares of BlackBuck, operating under Zinka Logistics Solutions, surged up to 5% to hit the upper circuit limit of INR 428.20 on the BSE today (February 4).

The stock opened 4.8% higher at INR 427 and fluctuated between INR 410.05 and INR 428.20 before breaching its upper circuit.

At this level, the company’s market capitalisation stood at INR 7,556.82 Cr, while its trading volume remained low at just 29.6K.

The rally in stock comes a day ahead of the company’s board meeting on February 5 to consider and approve the unaudited (standalone and consolidated) financial results for Q3 FY25.

In its first financial disclosure post-listing, BlackBuck slipped into the red in Q2 FY25 due to an exceptional loss of INR 320.74 Cr from a share-based payment expense.

The Flipkart-backed company reported a net loss of INR 308.38 Cr from continuing operations—nearly 7.8X higher than the INR 39.67 Cr loss in the year-ago quarter. Excluding this exceptional item, it would have posted a profit of over INR 12 Cr from its continuing operations.

The stock’s upsurge also aligns with a broader rally in benchmark indices, driven by the US administration’s temporary freeze on tariffs for Mexico and Canada and expectations of a 25-basis-point rate cut in the upcoming RBI monetary policy.

Notably, Indian equities had begun the week on a bearish note on Monday, mirroring the decline in global markets amid concerns over former US President Donald Trump’s tariff plans.

However, recovering from this, the Sensex was trading 603.79 points (0.78%) higher at 77,783.89 at 11:28 AM, while the Nifty 50 was up 172.80 points (0.74%) at 23,533.85.

BlackBuck made its stock market debut on November 22, listing at INR 279.05 on the BSE, a premium of 2.21% over the issue price.

While the shares are up 46.15% since listing at the previous close price, it has given a 23.22% upside in the last 5 trading sessions at the current market price.

Just a day ago, brokerage firm 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.

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.

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 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.