BlackBuck Hits Upper Circuit, Ends Third Consecutive Session In Green

Continuing its rally for the third consecutive trading session, shares of BlackBuck’s parent Zinka Logistics Solutions Ltd surged as much as 10% to hit its upper circuit of INR 499.05 on the BSE today (December 19). 

However, the stock pared some gains to end the day’s trading session 9.5% higher at INR 497 on the BSE. 

The company’s market capitalisation stood at INR 8,770.99 at the day’s session end and as many as 11.05 Lakh shares traded during the day.

The stock has given a return of 13.85% in the last five sessions, far surpassing the BSE’s negative return of 1.88% during the given period. 

Meanwhile, it has yielded a 78.10% return at today’s closing price of INR 497 since its listing on November 22. 

Not to mention, the stock debuted at a modest premium of 2.2% at INR 279.05 on the BSE against the IPO issue price of INR 273.

Today’s rally in the stock comes despite the broader Indian benchmark indices like BSE and NSE ending in the red. 

This broader slump was induced by the Federal Reserve’s quarter percentage point cut in its primary interest rate, bringing it to a target range of 4.25% to 4.5%. This also market the third consecutive rate cut of 2024. 

While Sensex fell 1.2% (or 964.16 points) to end the day’s trade at 79,218.05, Nifty 50 was also down 1.02% (or 247.15  points) at 23,951.70 for the day. 

What made things worse for the day’s broader trade was the indication alongside Federal Cuts that there will be only two additional cuts in 2025 which was less than the expected rate cuts for the upcoming year. 

Since the company on December 13 reported a net loss of INR 308.38 Cr in the September quarter of fiscal year 2024-25 (Q2 FY25), its stock has increased 17.39%. 

This  INR 308.38 Cr loss was a 7.8X increase from the INR 39.67 Cr loss it registered in the year-ago quarter.

The company incurred a share-based payment expense of INR 320.74 Cr for the quarter, which if not applied, would have yielded a net profit of INR 38.92 Cr during the quarter under review. 

Its topline also grew in the period under review, with revenue from operations increasing 56% to INR 98.77 Cr in Q2 FY25 from INR 63.37 Cr in the year-ago quarter. Sequentially, revenue increased by 7% from INR 92.16 Cr.

Founded in 2015 by Rajesh Yabaji, Chanakya Hridaya and Rama Subramaniam, BlackBuck commenced operations as a truck aggregator. Since then, the company has diversified and now offers a full stack of solutions – from load management and telematics to payments for fuel, FASTag or toll charges, and truck financing.

The company operates a B2B marketplace specialising in intercity full truckload transportation.