Motilal Oswal has given Buy recommendation for Transport Corporation of India recommended buy rating on the stock with a target price of Rs 860 in its researc with a target price of Rs. 860 in its research report issued on May 23, 2022
Motilal Oswal’s research report on Transport Corporation of India
TRPC offers integrated Logistics solutions through its three business divisions: TCI Freight, TCI Supply Chain, and TCI Seaways. It also has a JV with CONCOR, where it provides rail transport solutions. Its presence across segments helped it cater to a larger market and provide customized valueadded solution services as against mere transportation or warehousing. It has a fleet of more than 12,000 trucks, six cargo ships, more than 150 reefer vehicles, and 13m sq. ft. of warehousing space. While the freight services business is likely to benefit from a shift to organized from the unorganized sector, the supply chain will see a strong recovery driven by an improvement in the Auto sector. The Seaways segment, which is the highest margin segment for TRPC, is expected to continue its growth momentum in FY23. It plans to add cap.
Outlook
We expect TRPC to clock a revenue/PAT CAGR of ~18%/19% over FY22-24. The stock trades at 14x FY24E EPS. We maintain our Buy rating on the stock with a TP of INR860 (based on 17x FY24E EPS).
More Info
At 09:54 hrs Transport Corporation of India was quoting at Rs 716.50, up Rs 11.35, or 1.61 percent.
It has touched an intraday high of Rs 717.00 and an intraday low of Rs 712.85.
It was trading with volumes of 367 shares, compared to its thirty day average of 8,194 shares, a decrease of -95.52 percent.
In the previous trading session, the share closed down 0.90 percent or Rs 6.40 at Rs 705.15.
The share touched its 52-week high Rs 858.00 and 52-week low Rs 394.10 on 17 January, 2022 and 27 August, 2021, respectively.
Currently, it is trading 16.49 percent below its 52-week high and 81.81 percent above its 52-week low.
Market capitalisation stands at Rs 5,554.42 crore.