Zinka Logistics Q4 Results Review: Strong Execution Aids Profit Improvement; ICICI Securities Reiterates Buy

In Q4 FY25, Zinka Logistics' revenue stood at Rs 1.2 billion, up 6.9% QoQ/30.7% YoY. Adjusted Ebitda was ~Rs 388 million with margin at 31.8% (vs 11.2% in Q4 FY24). PAT was Rs 2.9 million which includes deferred tax impact of Rs 2.5 billion..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.In Q4 FY25, BlackBuck-Owner Zinka Logistics Ltd.’s revenue grew ~6.9% QoQ and given the scale efficiencies, adjusted Ebitda margin expanded ~280 bps QoQ, in line with our thesis that revenue growth should lead to disproportionate margin expansion as businesses scale atypical of value-added platform businesses. Sustained growth momentum from newer businesses (~50% YoY in Q4) was aided by growth in fuel sensor business (~2x in Q4). The in-principal approval for PPI license should aid revenue growth and profitability in core tolling business over medium term. The new product developed in telematics may drive growth by improving the affordability of the product. We believe high customer engagement on Blackbuck app may be a key growth driver. Reiterate Buy with target price of Rs 650..Key risks: Changing regulations hampering existing businesses; stalling growth in new businesses if management is unable to scale its marketplace and slowdown in logistics due to geopolitics/ muted consumption..Click on the attachment to read the full report:.Adani Ports Shares May Rise Upto 15% Says Motilal Oswal, Reiterates 'Buy'.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Zinka Logistics Q4 Results Review: Strong Execution Aids Profit Improvement; ICICI Securities Reiterates Buy

ICICI Securities maintains Buy on Zinka with three-stage DCF-based target price of Rs 650, sees upto 41% potential upside.

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