Buy Multibagger Multimodal Logistics Stock With Rs. 810 Target Price, Revenue Up 16%

Leading brokerage firm ICICI Direct has given a buy rating to the stock of Transport Corporation of India. This multibagger stock has given a return of 129.35% in the last 5 years.

Stock To Buy: Target Price

The Current Market Price (CMP) of Transport Corporation of India is around Rs. 670. ICICI Direct has estimated a Target Price for the stock at Rs. 810. This stock has the potential to give an 18% return, in the upcoming 12 months. It is a mid-cap stock with a market capitalization of Rs. 4,888 crore.

Stock Outlook
Current Market Price (CMP)	Rs. 670
Target Price	Rs. 810
Potential Upside	21.00%
52-week high share price	Rs. 858.60
52-week low share price	Rs. 527.00

Stock Upside

Maintaining a buy rating, the ICICI Direct stated firm said, "TCI's multi-modal solutions cater to the needs of a diversified customer base and help it to capture a higher wallet share of its customers. Focus on margin improvement by controlled cost structure and higher value added services. Capex plans remains at Rs. 125-150 crore for FY23 (without addition of ship). The management retains guidance of 15% on topline, bottom-line in FY23."

Strong Q2 Earnings

The company however, failed to report a good Q2 earning report. Revenues grew 16% YoY at Rs. 851 crore, led by freight, SCM, shipping revenue growth of 16%, 27%, (8)%, respectively. However, absolute EBITDA de-grew 7% to Rs. 92 crore, while EBITDA margins contracted 265 bps to 10.8%. Subsequently, PAT de-grew 16% to Rs. 57 crore. However, SCM segment, on the other hand, saw highest ever revenues due to retention and expansion of clients.

About the stock

TCI is a leading provider of integrated multi-modal logistics and supply chain solutions. The company has over six decades of experience and moves nearly 2.5% of India's GDP by value. TCI has 9000+ trucks in operation, six owned coastal ships, 12 million square feet warehousing space, 900 offices. In FY22, freight formed 15% of EBITDA while SCM and coastal shipping contributed 26% and 58%, respectively.

Disclaimer

The above stock was picked from the brokerage report of ICICI Direct. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.