Sharekhan has given Buy recommendation for Transport Corporation of India with a target price of Rs. 541 in its research report issued on Aug 04, 2021

Sharekhan’s research report on Transport Corporation of India

TCI reported broadly in-line revenues for Q1FY2022 while positively surprised on OPM leading to strong beat on net earnings. The management retained revenue and net profit growth guidance for FY2022. Management sees early signs of inventory built up with onset of festive season from August 2021. Capex of Rs. 150-200 crore for FY2022 while debt equity ratio stands at an all time low. Strong OCF and low leverage can aid in inorganic growth if opportunity arises.

Outlook

We retain a Buy on TCI Ltd with an unchanged price target of Rs. 541, led by its strong growth outlook and favorable positioning.

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