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 automobile 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 energetic telematics gadgets.
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 resembling FASTag, gas playing cards and automobile 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 score, 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 automobile financing companies, vital disruption to FASTag mechanism through GNSS and trucking OEMs managing to cordon-off a major share of telematics market.
