Stock Of The Day: TVS Supply Gains After Signing Contract With Daimler Truck — Key Levels
Here's all you need to know about the strategic contract with Daimler Truck South East Asia Pte., a unit of Germany's Daimler Truck AG.
Shares of TVS Supply Chain Solutions Ltd. surged the most in nearly seven weeks on Wednesday after it secured a five-year strategic contract with Daimler Truck South East Asia Pte., a unit of German-based Daimler Truck AG.
Strategic Deal Highlights
The new five-year strategic contract solidifies TVS SCS as a primary logistics partner for Daimler Truck AG, reinforcing the organisation's commitment to delivering exceptional logistics services between Germany and the Asia-Pacific region.
The TVS SCS and Daimler Truck South East Asia collaboration aims to achieve the following key operational goals:
Develop a robust logistics solution for spare part distribution.
The goal is to streamline supply chain operations for 16 Asia-Pacific countries from a Singapore logistics centre.
Manage 8,000 SKUs and 65,000 annual order lines with diverse storage needs.
Ensure efficient multimodal transportation and customs clearance.
Provide a customised IT solution suite for inventory visibility, ordering, management, pricing, invoicing, and analytics.
Key Levels to Watch
Support level: Rs 167 (One-week low)
Resistance Level: Rs 183.9 (One-month high)
Management Outlook
Integrated Supply Chain Solutions momentum is expected to continue in fiscal 2025, supported by a healthy pipeline and a continued focus on margin.
By the second quarter of fiscal 2025, the integrated Final Mile business will reach its target run rate profitability.
Global Forwarding Solutions freight rates have normalized, and the focus for fiscal 2025 will be on improving profitability.
Expects revenue growth of 15% year-on-year.
In the medium term, Capex guidance remains constant at 1% to 1.5% of revenue.
Shares of the company was trading 5.9% higher at Rs 179.3 apiece on the NSE, compared to a 0.76% rise in the benchmark Nifty 50 at 10:57 a.m.
Both the analysts tracking TVS Supply Chain Solutions have a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 35.8%.
