Target: ₹570

CMP: ₹407.85

BlackBuck is the largest full-stack tech platform for truck operators in India with offerings across payments (tolling and fuelling), telematics, load matching and vehicle financing.

As of Q2FY25, BlackBuck has 700k monthly transacting truck operators with 47 per cent + using two or more of its services. Almost 40 per cent of trucks’ tolling market share in the country passes through BlackBuck sourced and serviced FASTags with the company also having 390k+ monthly active telematics devices.

The company has an asset-light business model with strong retention that ensures sustained recurring revenues, which in turn, offers high contribution margins. While the company is dependent on its partners to offer services such as FASTag, fuel cards and vehicle financing, the consumer only interacts with the integrated platform and disposes loyalty and trust solely to BlackBuck.

We initiate on Zinka Logistics Solutions Ltd. (BlackBuck) with a Buy rating, valuing the business using DCF-based valuation approach.

Key risks: Growth slowing considerably in the larger tolling and telematics businesses, scaling challenges in load-matching or vehicle financing businesses, significant disruption to FASTag mechanism via GNSS and trucking OEMs managing to cordon-off a significant share of telematics market.

Published on February 3, 2025