Zinka Logistics Solutions Limited (NSE:BLACKBUCK) Is Expected To Breakeven In The Near Future

Zinka Logistics Solutions Limited (NSE:BLACKBUCK) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Zinka Logistics Solutions Limited provides digital platform for truck operators in India. The ₹85b market-cap company posted a loss in its most recent financial year of ₹1.7b and a latest trailing-twelve-month loss of ₹4.1b leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which Zinka Logistics Solutions will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

According to the 6 industry analysts covering Zinka Logistics Solutions, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of ₹1.7b in 2026. Therefore, the company is expected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 110% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Zinka Logistics Solutions given that this is a high-level summary, though, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

See our latest analysis for Zinka Logistics Solutions

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 34% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Zinka Logistics Solutions which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Zinka Logistics Solutions, take a look at Zinka Logistics Solutions' company page on Simply Wall St. We've also compiled a list of pertinent factors you should further research:

1. Valuation: What is Zinka Logistics Solutions worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Zinka Logistics Solutions is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Zinka Logistics Solutions’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.