Ambit Capital Upgrades BlackBuck to ‘Buy’ with Rs 885 Target
In a major endorsement for BlackBuck, India’s top digital freight platform, Ambit Capital has issued a ‘Buy’ rating and set a target price of Rs 885—a 25% upside from current levels. The brokerage highlights strong growth drivers in logistics, including rising digital adoption, operational efficiency gains, and macroeconomic tailwinds.
4 Reasons Behind Ambit’s Bullish Outlook
- Market Leader in Digital Freight
- BlackBuck operates India’s largest trucking marketplace, with 700,000+ trucks and 60,000+ clients (e.g., Unilever, Britannia).
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Dominates the $250B Indian logistics sector, poised for 8-10% annual growth.
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Scalable, Asset-Light Model
- Uses AI-driven route optimization to cut empty miles and boost fleet utilization.
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Expands rapidly without heavy capex, a key advantage.
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Revenue Growth at 35-40% CAGR
- Expected to hit ₹2,500 crore revenue by FY26 (vs. ₹1,200 crore in FY24).
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Fuel cards, insurance, and financing add high-margin revenue streams.
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Macro Tailwinds
- E-commerce boom, PLI schemes, and infrastructure push fuel freight demand.
Financial Projections & Valuation
- EBITDA-positive by FY25, net profitable by FY26.
- Margins to expand to 12-15% as scale benefits kick in.
Key Risks to Monitor
- Competition: Rivigo, Porter expanding digital freight services.
- Regulation: GST/fuel price changes may impact costs.
- Macro Slowdown: Could weaken freight demand.
Expert Views
- “BlackBuck’s tech edge and aggregation model are unmatched in India’s fragmented trucking market.”
— Pranav Gundlapalle, Elara Capital - “GST formalization and infrastructure growth will benefit organized players like BlackBuck.”
— Ravi Jakhar, Logistics Consultant
Investor Takeaway
Ambit’s bullish call makes BlackBuck a high-potential play on India’s logistics digitization. However, consider dollar-cost averaging due to sector volatility.
Bottom Line: With leadership in digital freight and a scalable model, BlackBuck is poised for long-term growth. Track quarterly earnings and market share trends for updates.
— By NextMinuteNews Research Desk
(Disclaimer: Not investment advice. Consult a financial advisor.)
