Domestic brokerage firm Mehta Equities has projected a significant upside for Sindhu Trade Links Limited, setting a target price of ₹27 per share. This represents a potential gain of approximately 26% from the stock's current level of around ₹21.5. In its latest research note, the brokerage advised investors to consider accumulating the stock on price dips, framing it as a long-term growth opportunity.
Five Pillars of Growth for Sindhu Trade Links
Mehta Equities bases its optimistic outlook on five fundamental factors. The firm believes Sindhu is well-positioned for steady, infrastructure-linked compounding growth with moderate cyclicality.
The first and core driver is the company's exposure to India's structural coal and power demand. Sindhu's logistics and transportation business is directly tied to Coal India and domestic coal evacuation. With a fleet of over 200 tippers, the company holds high-volume, recurring contracts with Coal India, ensuring stable cash flows. This is particularly relevant given the nation's ongoing push for energy security.
Secondly, the brokerage highlights Sindhu's strategic diversification. The company has a clear long-term plan, approved in July 2025, to expand into critical minerals and metals. This move aligns with India's National Critical Mineral Mission and rising global demand for strategic resources. Mehta Equities views this as a key initiative that enhances long-term growth potential and reduces reliance on coal-linked activities.
Stability and Tailwinds
The third factor is the revenue visibility provided by long-term contracts. As a key logistics partner to Coal India, Sindhu operates on a contract-based model. This significantly reduces revenue volatility compared to spot-market transport operators and supports predictable cash flows. The brokerage notes this makes the business more suitable for moderate-risk investors seeking stability within a cyclical sector.
Fourth, Sindhu stands to benefit from infrastructure capex tailwinds. The government's massive ₹11 lakh crore infrastructure outlay for FY26 is expected to boost mining support and related operations. The company, with its established base in Gurugram and a proven execution track record, is poised to capitalize on these opportunities. Mehta Equities also points out that the company's moderate leverage allows it to pursue growth without taking on excessive debt risk.
The final pillar is the company's integrated, in-house engineering depth and operational excellence. Management has invested in automated manufacturing and distribution capabilities. A core element is the Elitecon manufacturing platform, which offers cost and scalability advantages. Specifically, the 40,000 sq ft automated facility in Nashik—with a capacity of about 80 million cigarette sticks per month—enables rapid volume increases, product customization, and consistent quality without a proportional rise in fixed costs. This integrated capability across cigarettes, sheesha, flavored tobacco, and private-label FMCG products enhances operating leverage, improves margin control, and strengthens bargaining power with B2B clients.
Investment Suitability and Brokerage View
Mehta Equities concludes that the stock is best suited for investors with a long-term horizon, who are comfortable with regulatory and commodity-linked risks, and who prefer asset-backed, contract-driven business models. The firm's "accumulate on dips" recommendation underscores its belief in the company's long-term compounding story, driven by its core coal logistics strength and strategic diversification into high-growth areas like critical minerals.
Disclaimer: This information is for educational purposes only. The views and recommendations are those of the brokerage firm and not of the publisher. Investors are strongly advised to consult with certified experts before making any investment decisions.
