Accumulate Transport Corporation of India; target of Rs 1172: Asit C Mehta

Asit C Mehta report on Transport Corporation of India

Transport Corporation of India Ltd (TCI) is Incorporated in 1958, as a “One Man, One Truck, One Office” company, TCI today is a leading integrated supply chain and logistics solutions provider and a pioneer in the sphere of cargo transportation in India. With more than 64 years of experience in the logistics industry, TCI has continuously delivered excellence in every facet of its activities, satisfying the aspirations of its stakeholders, including society, shareholders, and the Indian transport community. The Company operates through three business divisions: TCI Freight, TCI Supply Chain Solutions and TCI Seaways. The Company also offers multimodal transportation solutions. TCI Freight division is a surface transport solutions provider. TCI Supply Chain Solutions division is a single-window enabler of logistics and supply chain solutions. TCI Seaways division deals with multimodal coastal players, connecting its western, eastern, and southern ports. The Company's subsidiaries include TCI-CONCOR Multimodal Solutions Pvt. Ltd., TCI Cold Chain Solutions Ltd., TCI Bangladesh Ltd., among others.

Outlook

We expect the company’s revenue to grow at a CAGR of 12.0% over FY24-FY27E. Hence, we recommend Transport Corporation of India Limited with a target price of Rs 1,172 based on FY27E EPS of Rs 62.7 with a forward PE Valuation multiple of 18.70; it looks value buy with growth potential at current levels. Hence, we recommend ACCUMULATE rating for the medium to long term.

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Tranasport Corporation of India - 05032025 - asit