A leading brokerage firm has initiated coverage on BlackBuck, the logistics and transportation technology company, with an “underperform” rating. The firm has set a target price (TP) of INR 450 per share, which represents a downside of 16% from the stock’s closing price in the previous session.
While the brokerage recognized BlackBuck’s unique position within the fragmented logistics sector and its competitive advantages, it expressed concerns over the company’s recent stock performance. The firm specifically pointed out the remarkable 105% rally in BlackBuck’s stock price since its listing in November 2024, suggesting that the rapid price increase may not be sustainable.
Despite this caution, the brokerage firm acknowledged that BlackBuck’s core business segments—tolling and telematics—hold significant potential for growth. The firm projected that the company could achieve a compound annual growth rate (CAGR) of mid-20% from FY25 to FY27, driven by these key business areas.
The tolling business, which includes the collection of toll fees for logistics companies, and the telematics segment, which involves real-time tracking and monitoring of vehicle data, are expected to continue benefiting from the digital transformation of the Indian logistics industry.
However, the brokerage’s “underperform” rating and target price of INR 450 indicate that it believes BlackBuck’s current valuation is not fully aligned with its future growth prospects, urging investors to exercise caution.
The company has rapidly gained market attention, with its recent IPO marking a significant moment in the Indian tech-driven logistics space. BlackBuck’s strong market position and competitive edge in an increasingly fragmented market have made it one of the prominent players in the sector. Still, analysts remain cautious as they monitor the company’s performance amid an already high valuation.
Investors will be closely watching the company’s next moves and financial performance, particularly in the coming quarters, as it navigates its post-IPO phase.
