Buy BlackBuck; target of Rs 675: ICICI Securities

Moneycontrol • 2 days ago

Original source

Key Investment Pillars

  • BlackBuck's core businesses growth accelerated to >30% YoY, driven by Telematics growing >50% YoY and Superloads scaling up, indicating improving subscription revenue outlook.
  • Growth businesses grew 166% YoY, led by AI-driven productivity gains in Superloads, with vehicle finance on track for EBITDA break-even in FY27E.
  • Management has guided for minimal impact due to MDR on UPI, with >50% of transactions below INR 2,000, and the remainder covered through pre-debit notification/zero-PDN mandate route for FASTag recharges.

Thesis Validation Checklist

  • Investors should watch for continued acceleration in core growth, driven by Telematics and Superloads, as well as the company's ability to maintain its market share in the logistics industry.
  • Key signals to monitor include average monthly transacting truck operators, customers using two or more services, and the company's ability to scale its marketplace while maintaining profitability.
  • Regulatory headwinds on existing businesses and stalling growth in new businesses are key risks to the thesis.