Buy This Logistic Stock For Potential Upside Of More Than 16%: Anand Rathi

Anand Rathi, one of the leading brokerage companies in India, has suggested purchasing a mid-cap company from the logistics sector. The brokerage firm has given a buy call with a target price of Rs. 920 and is highly bullish on the Transportation Corporation of India Ltd.

According to the most recent report by Anand Rathi, the stock price has shown a strong momentum to the upside over the previous several weeks and has the potential to increase by more than 16% from the current market price.

Outlook of Transportation Corporation of India Ltd.

Transportation Corporation of India Ltd (TCI) is India's leading multimodal logistics service provider. The company has been in the business for more than 6 decades, and since then, the company has been setting new benchmarks in logistics and supply chain.
The company is present in multiple segments of the logistics industry, including warehousing, transportation, and supply chain management. TCI also offers logistics services to customers through roadways, railways, and seaway routes.

Outlook of Transportation Corporation of India Ltd Stock Price

TCI is a mid-cap company with over Rs. 6,132 Crores market capitalization. The stock's current market price is Rs. 791, with a price-to-earnings ratio of 19.1. The company also pays the shareholders a dividend yield of 0.77% and a dividend payout ratio of 16.0%.
The price of the stock is trading very near its all-time highs, and the latest report of Anand Rathi suggests the stock has the potential to reach the target price of Rs. 920.

Valuation of Transportation Corporation of India Ltd

As per the latest report of Anand Rathi, 'TCI consolidated income from operations for the quarter ended June 30, 2022, rose 29.7% to ₹9,029 million, compared with ₹6,961 million in the corresponding quarter of the previous year. TCI consolidated income from operations for the year March 31, 2022, rose 16.2% to ₹32,567 million, compared with ₹28,024 million in the corresponding period of the previous year.'

'We estimate that the company's revenue will grow by ~12% CAGR over the coming two years & estimate the operating margins to remain stable,' said Anand Rathi's latest report summarizing the company's valuation.

Buy Call of Anand Rathi On TCI Ltd.

As mentioned in the latest report of Anand Rathi, "TCI has a strong presence with 12000+ trucks in operation, 8000+ general purpose containers, 1400 IT-enabled own offices, 650+ ISO liquid tank containers, 6 coastal cargo ship, 150+ reefer vehicles, 13,000+ cold pallets position, 13 million sq ft warehouse space, and 6000+ trained employees."
"We believe TCI is well placed in India's logistics industry given its strength and capability. Various government initiatives and key strategies will drive the growth of the logistics sector. The logistics industry is a key contributor to the country's vision of being a $5 trillion economy by 2024-25. The rise in e-commerce, growing omni-channels, and China+1 strategy will also add to the industry's growth. We initiate our coverage on TCI with a BUY rating with a target price of ₹920 per share."