Zinka Logistics has been on a remarkable run, surging 87% since its market debut in November 2024. On 10 February 2025, Zinka logistics share price hit the 5% upper circuit, closing at INR 510.85. This performance places it among the top gainers in the Indian stock market, fueled by strong investor confidence in its BlackBuck platform.
Zinka Logistics – Stock Performance
- February Momentum: Up 34% so far this month, reversing a 20% dip in January.
- December Rally: The stock gained 78% in December, making it a standout performer.
- Since IPO: Listed at INR 273 on 22 November 2024, marking an 87% total gain.
- Highs & Lows: Peaked at INR 548 (27 Dec 2024); lowest at INR 248.25 (27 Nov 2024).
- Winning Streak: 10 consecutive sessions in the green.
Financial Highlights
Despite the stellar stock performance, Zinka Logistics is yet to turn profitable.
- Net Loss: Reported INR 48 crore loss in Q3 FY25, widening from INR 19.5 crore in Q3 FY24, but a sharp recovery from INR 269 crore loss in Q2 FY25.
- Revenue Growth: 41% YoY increase to INR 113.9 crore (Q3 FY25) from INR 80 crore (Q3 FY24).
- Total Income: Climbed to INR 123 crore from INR 91 crore YoY.
- IPO Performance: Open for subscription from 13-18 Nov 2024. Listed at INR 280.90 (NSE, +2.89%) and INR 279.05 (BSE, +2.2%).
Key Takeaways:
The company’s revenue growth is outpacing losses, suggesting improving operational efficiency. However, it remains in the red, and further cost control or revenue acceleration will be needed for sustained profitability.
About Zinka Logistics
Zinka Logistics operates India’s largest digital network for truck operators through BlackBuck, a platform streamlining toll payments, fuel management, fleet tracking, and load matching.
- Market Penetration: 9.63 lakh truck operators onboarded, covering 27.52% of India’s truck market.
- Transaction Volume: Facilitated 413.34 million transactions in FY24.
- Strong Backing: Flipkart remains a key investor, lending credibility and strategic advantages.
Brokerage Recommendations: Should You Buy?
Brokerages remain bullish on Zinka Logistics despite its losses.
- JM Financial: Initiated ‘Buy’ rating with a target of INR 570 (March 2026).
- Target Upgrade: Recently revised upwards to INR 580, citing strong revenue growth and improving cost efficiency.
- Revenue Growth Outlook: Forecasted 31% CAGR from FY24 to FY29.
- EBITDA Margin: Expected to exceed 45% in the long term.
- Long-Term Valuation: Analysts believe operating leverage will drive adjusted EBITDA profitability.
What Could Go Wrong?
- Sustained Losses: The company remains unprofitable and requires continued revenue growth to offset high operational costs.
- Competitive Risks: Digital logistics is a crowded space, with players like Rivigo and Delhivery posing a challenge.
- Market Volatility: The stock has shown sharp swings, making it risky for short-term investors.
- Cash Burn & Capital Needs: Future expansion may require additional funding, leading to potential dilution.
Final Verdict
Zinka Logistics has momentum on its side, with strong revenue growth and increasing investor confidence. Its dominance in digital trucking, Flipkart’s backing, and brokerage optimism make it an attractive long-term bet. However, short-term risks remain, given its unprofitable status and market volatility.
For long-term investors, the stock presents a high-risk, high-reward opportunity. Those with a short-term horizon should proceed with caution.
Disclaimer: This article is for educational purposes only and does not constitute investment advice. Readers should conduct their own research before making investment decisions.