Timescan Logistics India Limited

Hi guys, anyone still tracking the company ? I have the following points to share –

1. Freight rates have been on an uptrend since April and are currently at elevated levels due to the red sea shipping crisis and strong recovery in shipping volumes.

2. Strong results were reported in Q1 FY25 by Tiger Logistics and the international supply chain business of Allcargo Logistics. Further, commentary from mgmt of Allcargo Logistics for July month suggested that demand will sustain till peak season i.e. end of calendar year 2024. Timescan being an international freight forwarder like the above 2 businesses should also benefit from the same since they essentially follow a cost plus model whereby high freight rates implies higher brokerage/profits.

3. Currently company is trading at 12xPE TTM basis. With more cash than debt on books and increase in fixed assets to 10cr in FY24 from 3cr in FY22, i personally feel there is little downside risk with company mkt cap at 45cr. Plus points 1 and 2 highlighted above suggest a potential strong increase in topline/bottomline in FY25.
   Promoter holding remains strong at 73% which is a good signal.

Disc – Invested and biased.