TCI Express Ltd is Rated Sell

Understanding the Current Rating

MarketsMOJO’s rating system evaluates stocks based on a composite Mojo Score, which incorporates multiple parameters including quality, valuation, financial trends, and technical indicators. TCI Express Ltd currently holds a Mojo Score of 42.0, corresponding to a Sell rating. This score reflects a decline of 12 points from its previous Hold rating, which was assigned before 30 January 2023.

For investors, a Sell rating suggests caution. It indicates that the stock is expected to underperform relative to the broader market or its sector peers, and that there may be better opportunities elsewhere. The rating is not a call for immediate divestment but rather a signal to carefully assess the risks and fundamentals before committing capital.

Here’s How TCI Express Ltd Looks Today

As of 24 February 2026, the company’s financial and market data present a mixed but predominantly cautious picture. The stock’s recent price movements show modest volatility, with a 1-day gain of 0.02%, but longer-term returns have been disappointing. Over the past year, the stock has delivered a negative return of -20.49%, underperforming the BSE500 benchmark consistently over the last three years.

These returns are reflective of underlying operational challenges and market sentiment, which are further illuminated by the company’s fundamental grades.

Quality Assessment

TCI Express Ltd’s quality grade is rated as average. This assessment considers factors such as profitability, return on capital employed (ROCE), and operational efficiency. The latest half-year data reveals a ROCE of 13.59%, which is relatively low for the transport services sector, indicating limited capital efficiency. Additionally, the debtor turnover ratio stands at 4.93 times, suggesting slower collection cycles that could impact liquidity.

Furthermore, the company’s net sales have grown at an annualised rate of 8.69% over the past five years, while operating profit growth has been a mere 1.30% annually. This sluggish growth trajectory points to challenges in scaling operations profitably, which weighs on the quality score.

Valuation Perspective

Despite the operational headwinds, TCI Express Ltd’s valuation grade is considered attractive. This implies that the stock is trading at a relatively low price compared to its earnings, book value, or cash flow metrics. For value-oriented investors, this could signal a potential entry point if the company’s fundamentals improve or if the market sentiment turns more favourable.

However, attractive valuation alone does not guarantee positive returns, especially if the company’s financial trends and technical outlook remain weak.

Financial Trend Analysis

The financial grade for TCI Express Ltd is flat, indicating a lack of significant improvement or deterioration in key financial metrics over recent periods. The company’s December 2025 results were largely stagnant, reflecting limited growth momentum. This flat trend is a concern for investors seeking companies with accelerating earnings or cash flow generation.

Moreover, the company’s consistent underperformance relative to the benchmark over the past three years, coupled with a negative 20.73% return in the last 12 months, underscores the absence of a positive financial trajectory.

Technical Outlook

From a technical standpoint, the stock is rated as mildly bearish. This suggests that recent price patterns and momentum indicators are not supportive of a sustained upward move. The stock’s 1-month return of +11.20% is a short-term positive, but this is offset by declines over 3 months (-6.09%) and 6 months (-20.41%).

Technical analysis plays a crucial role for traders and short-term investors, and the current mildly bearish signals advise caution in initiating new positions without clear signs of trend reversal.

Implications for Investors

Investors considering TCI Express Ltd should weigh the Sell rating carefully against their portfolio objectives and risk tolerance. The average quality and flat financial trends suggest limited near-term growth prospects, while the attractive valuation may appeal to value investors willing to accept short-term volatility.

Given the mildly bearish technical signals and the stock’s underperformance relative to benchmarks, a cautious approach is advisable. Investors may prefer to monitor the company’s operational improvements or wait for clearer signs of financial momentum before increasing exposure.

In summary, the Sell rating reflects a comprehensive evaluation of TCI Express Ltd’s current fundamentals and market position as of 24 February 2026, signalling that the stock is not favoured for accumulation at this time.

Company Profile and Market Context

TCI Express Ltd operates within the transport services sector and is classified as a small-cap company. The sector is competitive and sensitive to economic cycles, which can impact demand for logistics and express delivery services. The company’s modest growth rates and operational challenges highlight the difficulties faced in maintaining profitability and market share.

Market participants should also consider broader sector trends and macroeconomic factors that could influence the company’s future performance.

Summary of Key Metrics as of 24 February 2026

• Mojo Score: 42.0 (Sell)
• Quality Grade: Average
• Valuation Grade: Attractive
• Financial Grade: Flat
• Technical Grade: Mildly Bearish
• 1-Year Return: -20.49%
• 5-Year Net Sales Growth (CAGR): 8.69%
• 5-Year Operating Profit Growth (CAGR): 1.30%
• ROCE (Half Year): 13.59%
• Debtors Turnover Ratio (Half Year): 4.93 times

These figures provide a snapshot of the company’s current standing and help explain the rationale behind the Sell rating.

Conclusion

TCI Express Ltd’s current Sell rating by MarketsMOJO, last updated on 30 January 2023, is supported by a combination of average quality, attractive valuation, flat financial trends, and mildly bearish technical indicators. The stock’s recent underperformance and operational challenges suggest that investors should exercise caution and closely monitor developments before considering new investments.

While the valuation may offer some appeal, the overall outlook remains subdued, making the Sell rating a prudent guide for investors seeking to optimise their portfolios in the transport services sector.

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