Goal: ₹570
CMP: ₹407.85
BlackBuck is the most important full-stack tech platform for truck operators in India with choices throughout funds (tolling and fuelling), telematics, load matching and car financing.
As of Q2FY25, BlackBuck has 700k month-to-month transacting truck operators with 47 per cent + utilizing two or extra of its companies. Virtually 40 per cent of vans’ tolling market share within the nation passes by means of BlackBuck sourced and serviced FASTags with the corporate additionally having 390k+ month-to-month lively telematics units.
The corporate has an asset-light enterprise mannequin with robust retention that ensures sustained recurring revenues, which in flip, provides excessive contribution margins. Whereas the corporate relies on its companions to supply companies corresponding to FASTag, gas playing cards and car financing, the buyer solely interacts with the built-in platform and disposes loyalty and belief solely to BlackBuck.
We provoke on Zinka Logistics Options Ltd. (BlackBuck) with a Purchase ranking, valuing the enterprise utilizing DCF-based valuation strategy.
Key dangers: Development slowing significantly within the bigger tolling and telematics companies, scaling challenges in load-matching or car financing companies, important disruption to FASTag mechanism through GNSS and trucking OEMs managing to cordon-off a big share of telematics market.
