Goal: ₹570
CMP: ₹407.85
BlackBuck is the biggest 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 vehicles’ tolling market share within the nation passes via 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 sturdy retention that ensures sustained recurring revenues, which in flip, provides excessive contribution margins. Whereas the corporate depends on its companions to supply companies comparable to FASTag, gasoline playing cards and car financing, the patron 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 method.
Key dangers: Progress slowing significantly within the bigger tolling and telematics companies, scaling challenges in load-matching or car financing companies, important disruption to FASTag mechanism by way of GNSS and trucking OEMs managing to cordon-off a big share of telematics market.
