#Tara Chand Infralogistic Solutions Ltd #TARACHAND 
Market Cap₹ 436 Cr. 
Stock P/E 18.7 
Promoter holding 69.6 %

Keep on the radar #MICROACAP 

Company Overview:

Tara Chand Infra Logistics Solutions Limited operates across India with three key segments:

Segment-A: Equipment rentals and infrastructure works.
Segment-B: Warehousing, handling, and transportation.
Segment-C: Steel processing and distribution.
Segment Highlights:

Equipment Rentals:

Operates a fleet of over 300 machines, including cranes, piling rigs, and aerial working platforms.
Recently acquired the largest capacity crane in its fleet (800 tons) from Zoomlion China.
Introduced the tallest aerial working platform in India (68 meters) for a steel plant expansion project.
Warehousing and Transportation:

Provides logistics solutions primarily for the steel sector, working with public sector undertakings like Steel Authority of India Limited.
Experienced a marginal revenue increase of 1% in Q2 FY25 due to one-off declines in Q1 FY25, but expects stronger growth in Q3 and Q4.
Steel Processing and Distribution:

Revenue grew by 25% year-on-year to ₹8.8 crores, driven by a major new order executed in Q1 FY25.
Financial Performance:

Q2 FY25:

Revenue surged to ₹60.4 crores, a 41% year-on-year growth.
EBITDA reached ₹21.78 crores, a 61% increase, resulting in the highest EBITDA margin of 36%.
Profit before tax increased by 184% to ₹9.62 crores, with profit after tax growing by 168% to ₹7.22 crores.
Half Year FY25:

Revenue climbed 30% year-on-year to ₹107.7 crores, with EBITDA up 41% to ₹37.72 crores and an EBITDA margin of 35%.
Profit before tax doubled to ₹15.7 crores, and profit after tax grew by 81% to ₹11.75 crores.
Operational Efficiency:

Receivable days reduced from 100 days to 85 days year-on-year.
Healthy order book of ₹104 crores as of October 1, 2024, a 31% year-on-year growth, fully executable in the current financial year.
Capital Expenditure:

Undertook CAPEX of ₹94.30 crores in FY25, the highest in company history.
Targeting total CAPEX of ₹100 crores for the financial year, with plans to deploy the remaining amount by December.
Market Dynamics and Future Outlook:

Management remains optimistic about robust demand in the cement and steel sectors despite JSW Steel's reduced CAPEX plans.
Anticipates stronger performance in Q3 and Q4, traditionally higher revenue quarters.
Plans to expand footprint in renewable energy, covering solar and wind energy sectors.
Expecting to maintain growth guidance of 30% for FY25.
Challenges:

Some challenges noted in warehousing and transportation segments due to labor constraints and management changes at client companies, but management expects recovery in volumes and margins.
Noted higher expenses mainly due to hiring equipment from outside sources during peak demand periods, rather than purchasing new machines.
Conclusion:

Overall, the management expresses confidence in sustaining growth and operational efficiency, with a strong order book and strategic CAPEX investments to support future expansion.
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