On February 10, Zinka Logistics’ stock opened at ₹510.85 with a 5% upper circuit, indicating a significant increase in value. After a 78% increase in December and a 20% drop last month, it has gained about 34% this month.
Zinka Logistics Stock:
The share price of Zinka Logistics has recently been steadily rising. On Monday, February 10, Zinka Logistics’ shares began at a 5% higher circuit of ₹510.85, continuing its tenth straight session of advances. The stock has increased by around 34% in February every month, following a 20% drop the previous month. The stock had jumped 78% in December.
On November 22 last year, Zinka Logistics Solutions’ shares debuted on the Indian stock exchanges. In less than three months, the small-cap stock has increased by more than 87% from its issue price of ₹273 to its current market price of ₹510.85.
Following an all-time low of ₹248.25 on November 27 of last year, the transport stock reached an all-time high of ₹548 on December 27.
Truck drivers can use the BlackBuck app, a digital platform Zinka Logistics Solution offers. Reports state that during the fiscal year 2024, 963,345 truck operators nationwide—or 27.52 percent of all truck operators in India—used the platform to do business.
Zinka Logistics Solution’s BlackBuck app is a platform that offers telemetry, payments, a freight marketplace, and vehicle financing alternatives to enable truck drivers to achieve their goals successfully.
The IPO of Flipkart-backed Zinka Logistics, which was available for subscription from November 13 to November 18, received 1.87 subscriptions.
With a buy rating and price of ₹570, or 42 times FY27E PER (price-to-earnings ratio), brokerage company JM Financial began covering the stock on February 2.
BlackBuck’s sales increased at a compound annual growth rate (CAGR) of 63% over FY22–24, according to the brokerage firm, and the company turned adjusted EBITDA profitable in the second half of the most recent fiscal year (H2FY24).
It also emphasized how BlackBuck’s ecosystem-led business strategy enables it to cross-sell its other services and attract customers through its offers with little additional expense. Its asset-light business strategy and high retention rate guarantee steady recurring income and substantial contribution margins.
“We predict that it will increase revenue by almost 31% between FY24 and FY29, and the EBITDA margin will rise to over 45%.” Our DCF-based valuation of the firm leads to a target price of ₹570 in March 2026,” JM Financial stated.
According to JM Financial, the main risks to our investment thesis are: (1) a significant slowdown in the growth of the larger tolling and telematics businesses; (2) difficulties scaling load-matching or vehicle financing businesses; (3) a significant disruption to the FASTag mechanism via GNSS; and (4) trucking OEMs controlling a sizable portion of the telematics market.
Although the stock’s favorable fundamentals make it a potential long-term investment, several technical analysts advise against profit recording.
The stock of Zinka Logistics Solutions is overpriced, according to Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share & Stock Brokers. The R5 Camarilla level indicates it is approaching a significant barrier around ₹555, suggesting a possible retreat.
“Profit booking is advised in the ₹545–555 range since resistance may lead to selling pressure. At this point, new long positions should be avoided due to the overextended move, Patel said.
“Better risk-reward prospects may arise later from a sound retracement. To wait for a more favorable entry, traders should keep an eye on price movement that is close to resistance. The stock can have a drop if it is unable to maintain above ₹555. Stretched rallies frequently result in profit-taking and short-term reversals, so caution is advised,” Patel stated.
