TCI Express Ltd is Rated Sell by MarketsMOJO

Current Rating and Its Significance

MarketsMOJO’s 'Sell' rating for TCI Express Ltd indicates a cautious stance towards the stock, suggesting that investors may want to consider reducing exposure or avoiding new purchases at this time. This rating is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. The rating was assigned on 30 January 2023, when the Mojo Score dropped significantly from 54 (Hold) to 31 (Sell), reflecting a marked deterioration in the company’s outlook. Despite the rating date, the following analysis uses the latest available data as of 11 January 2026 to provide a current perspective.

Quality Assessment

As of 11 January 2026, TCI Express Ltd’s quality grade is assessed as average. Over the past five years, the company has demonstrated modest growth in net sales at an annualised rate of 8.21%, while operating profit growth has been more subdued at 3.22% per annum. This indicates that while the company is expanding its top line, profitability improvements have lagged behind, raising concerns about operational efficiency and competitive positioning within the transport services sector.

Moreover, the company has reported negative results for eight consecutive quarters, signalling persistent challenges in maintaining profitability. Operating cash flow for the year stands at ₹117.52 crores, which is relatively low given the company’s scale, and net profit after tax (PAT) for the nine months ended shows a decline of 20.40%, amounting to ₹62.74 crores. These figures highlight ongoing pressure on earnings quality and cash generation capacity.

Valuation Perspective

Despite the operational challenges, TCI Express Ltd’s valuation grade is currently very attractive. The stock trades at levels that may appeal to value-oriented investors seeking potential turnaround opportunities or long-term appreciation. However, the attractive valuation must be weighed against the company’s deteriorating financial trend and bearish technical indicators, which suggest caution.

Financial Trend Analysis

The financial grade for TCI Express Ltd is negative as of today. The company’s profit before tax excluding other income (PBT less OI) for the latest quarter is ₹27.71 crores, reflecting a decline of 10.96%. This downward trend in profitability is compounded by the consistent negative quarterly results and shrinking PAT. The stock’s returns over various time frames further underscore this trend, with a one-year return of -35.45%, a six-month return of -28.78%, and a three-month return of -21.95%. Year-to-date, the stock has declined by 6.59%, and the one-day change is -2.24%, indicating continued selling pressure.

Additionally, TCI Express Ltd has underperformed the BSE500 benchmark in each of the last three annual periods, signalling persistent relative weakness. This underperformance reflects both sectoral headwinds and company-specific issues that have weighed on investor sentiment.

Technical Outlook

The technical grade for the stock is bearish as of 11 January 2026. The downward momentum is evident from the recent price declines and negative short-term indicators. The stock’s price action over the past week shows a decline of 9.46%, and over the past month, it has fallen by 5.95%. These technical signals suggest that the stock is currently in a downtrend, which may continue until there is a clear reversal in fundamentals or positive catalysts emerge.

Implications for Investors

For investors, the 'Sell' rating on TCI Express Ltd serves as a cautionary signal. The combination of average quality, very attractive valuation, negative financial trends, and bearish technicals suggests that the stock faces significant near-term challenges. While the valuation may tempt value investors, the ongoing decline in profitability and cash flow, coupled with weak price momentum, indicates that risks remain elevated.

Investors should carefully consider their risk tolerance and investment horizon before initiating or maintaining positions in TCI Express Ltd. Monitoring quarterly results and sector developments will be crucial to reassessing the stock’s outlook in the coming months.

Company Profile and Market Context

TCI Express Ltd operates within the transport services sector and is classified as a small-cap company. The sector has faced various challenges including rising fuel costs, regulatory changes, and competitive pressures from both organised and unorganised players. These factors have contributed to the company’s subdued growth and profitability metrics.

As of 11 January 2026, the company’s market capitalisation remains modest, reflecting investor caution. The stock’s recent performance, with a steady decline over multiple time frames, mirrors the broader difficulties faced by transport service providers in maintaining margins and growth amid evolving market dynamics.

Summary of Key Metrics as of 11 January 2026

To summarise, the key financial and performance indicators for TCI Express Ltd are:

• Mojo Score: 31.0 (Sell grade)


• Quality Grade: Average


• Valuation Grade: Very Attractive


• Financial Grade: Negative


• Technical Grade: Bearish


• One-year stock return: -35.45%


• Operating cash flow (annual): ₹117.52 crores


• PAT (9 months): ₹62.74 crores, down 20.40%


• PBT less other income (quarterly): ₹27.71 crores, down 10.96%

These metrics collectively justify the current 'Sell' rating and highlight the need for investors to exercise caution.

Outlook and Considerations

While the valuation appears attractive, the negative financial trend and bearish technical outlook suggest that the stock may face continued headwinds. Investors should watch for improvements in profitability, cash flow generation, and positive shifts in technical indicators before considering a more optimistic stance.

In the meantime, the 'Sell' rating reflects a prudent approach, signalling that the risks currently outweigh the potential rewards for TCI Express Ltd.

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