Tara Chand Infralogistic Solutions Ltd.
tarachandindia.in NSE: TARACHAND
Value Pick Multibagger stock for long term investment
₹420 Cr.
₹53.3
₹105 / ₹27.2
18.0
Key Metrics
| Metric | Value |
|---|---|
| Book Value | ₹12.5 |
| Dividend Yield | 0.00% |
| ROCE | 16.3% |
| ROE | 18.1% |
| Debt | ₹85.2 Cr. |
| Reserves | ₹79.7 Cr. |
| Promoter Holding | 69.6% |
| Sales (Trailing 12 Months) | ₹213 Cr. |
| Profit Growth (1Y) | 98.0% |
| Sales Growth (3Y CAGR) | 16.0% |
Stock Price Movement
Tara Chand Infralogistic Solutions Ltd. has exhibited significant volatility over the past year, trading between a low of ₹27.2 and a high of ₹105.
Recent Trends:
- Stock has recovered from lows, currently trading at ₹53.3
- Indicates moderate upward trajectory
- Reflects improving investor sentiment
Key Catalysts for Price Movement
- Sharp rise to ₹105 coincided with new contract announcements
- Robust financial results driving initial surge
- Profit-taking and macroeconomic concerns led to correction
Volume Analysis
Recent trading volumes suggest increased participation from institutional investors, reflecting confidence in the company’s growth potential.
Outlook
Stock price expected to gain momentum in medium term, driven by:
- Strong financial performance
- Strategic expansions
- Sectoral tailwinds
Fair valuation estimate: ₹60-65, offering potential upside of 15-20%
Business Overview
Specialized player in logistics and infrastructure services across three primary verticals:
Infra-work and Tangible Goods Services (Segment A)
- Earth-moving, material handling, site development for large infrastructure projects
- Recent contracts include public sector infrastructure development in highways and industrial corridors
Transportation & Handling Services (Segment B)
- Fleet of vehicles for bulk goods transportation
- Transports cement, steel, and aggregates
- Comprehensive handling solutions for ports and industrial clients
Processing & Distribution of Goods (Segment C)
- Value-added services: processing, sorting, packaging of bulk commodities
- Key clients in construction and industrial sectors
Future Growth Drivers
Industry Expansion
- India’s infrastructure spending projected to grow 20% YoY
- Mega projects in highways, smart cities, rail corridors provide long-term opportunities
Revenue Diversification
- Increasing contributions from higher-margin Processing & Distribution segment
Strategic Fleet Investments
- New capex allocation to expand transportation capacity
- Focus on high-demand commodities
Government Policy Support
- Policies favoring private logistics players in public infrastructure projects
Planned Expansions
Fleet Modernization
₹50 Cr. planned for procurement of energy-efficient vehicles and machinery
Logistics Parks Expansion
Development of two additional logistics hubs by FY 2026
Digital Infrastructure
Implementation of AI-driven logistics platforms to improve delivery timelines and reduce costs
Capital Expenditure and Strategic Rationale
Capex (FY 2025-2026): ₹85 Cr.
Purpose: Improve operational efficiency, expand service offerings, meet growing demand
Rationale: Position company to handle larger contracts, scale revenues, maintain profitability
Financial Projections
- Revenue Growth: CAGR of 18-20% for next three years
- Profit Margins: Expected to stabilize at 10-12%
- Debt-to-Equity Ratio: Projected to improve
Competitive Landscape
Strengths
- High promoter holding (69.6%) ensures long-term vision
- Diversified operations reduce revenue stream dependency
Challenges
- Competition from larger players like GATI Ltd. and Transport Corporation of India Ltd.
- Potential cost escalation in fuel and logistics
Opportunities
- Emerging sectors like renewable energy and smart city logistics
- Potential partnerships with global logistics players
Risks
- Heavy reliance on infrastructure spending policies
- Potential delays in project execution or approvals
Valuation Estimate
Based on current and projected financials:
- Fair P/E Range: 20-22 (sector average)
- Fair Value Estimate: ₹60-65 per share
- Upside Potential: 15-20% from current price
Investment Thesis
Tara Chand Infralogistic Solutions Ltd. is strategically positioned to capitalize on India’s growing infrastructure and logistics demand. With robust operational metrics, clear growth strategies, and planned expansions, the company offers significant long-term growth potential.
The stock remains attractive for medium to long-term investors seeking exposure to the logistics and infrastructure sectors.