Multibagger alert! This stock doubled shareholder's money in 2021; hit all-time high today

The year 2021 has delivered a huge number of multibagger stocks. Shares of TCI Express Limited (TCIE) have doubled investors' money so far in 2021. In comparison, the Nifty 50 index gained over 30 per cent and the S&P BSE Sensex index rose over 28 per cent.

This multibagger stock has surged from the Rs 942.65-mark to touch Rs 1,900. It has gained 101.5 per cent since the beginning of this year and has risen 135 per cent in the last one year.

The stock rose 17 per cent to hit an all-time high of Rs 1,900 on the Bombay Stock Exchange (BSE). It ended 12.68 per cent higher at Rs 378.60 against the previous close of Rs 336. Market cap of the firm rose to Rs 6966.6 crore. The shares stand higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

According to Mr. Manoj Dalmia, Founder and Director, Proficient Equities Limited, Aggressive traders can buy the stock at the current levels. On the other hand, Defensive traders can buy 50% quantity at the current levels and wait for a small retracement.

He stated that the company has a fundamentally strong business model and the management is confident on the recovery of business activity. The stock is good for long-term investment and can touch Rs 2,100 mark in the near term.

Motilal Oswal believes that TCIE is well-placed to capitalise on the growth opportunity in the Express industry. With a pick-up in TCIE's volumes and improvement in efficiency on the back of its investments in sorting centres and automation, we expect the EBITDA margin to increase to ~19% in FY24E from ~16% in FY21, resulting in 26% EBITDA CAGR over FY21-24E.

"We maintain our estimates for TCIE and expect volumes to pick up as manufacturing activity improves. This will lead to 19% revenue CAGR for the
company over FY21-24E. We maintain our estimates for FY22E/23E and retain our 'Buy' rating on the stock," the brokerage house added.

The company reported a standalone profit of Rs 34 crore for the quarter ended September 2021 compared with a profit of Rs 23 crore in the year-ago period. Revenue from operations grew 28 per cent to Rs 273 crore in the September-ended quarter against Rs 212.95 crore a year ago.

"Looking ahead, the recently launched 'PM Gati Shakti National Master Plan' by our Prime Minister for multimodal infrastructure connectivity to economic zones which is designed to include projects under the existing Bharatmala, Sagarmala, Udaan, expansion of railway network, inland waterways is expected to aid in seamless movement of goods and improve the ease of doing business," said Mr. Chander Agarwal, Managing Director, TCIE.

"This new initiative coupled with strong pick-up in economic activities, ongoing festive season, increasing demand from the rural areas due to longer than expected monsoons, increasing vaccination and declining covid cases, will drive demand in the upcoming quarters," Agarwal added.