Buy This Logistics Stock For 17% Returns, Reported Strong Revenue Growth In Q4

Stock Overview- Target Price, CMP, Return, 52 Week Low & High

Motilal Oswal has estimated a target price of Rs 870. The stocks today opened at Rs 747.70. The current market price (CMP) of the stock is Rs 749.50. According to the CMP and the estimated target price, the stock has the potential to gain 17%. The stocks performed well in the last 1 year, gaining close to 60%. It has touched the 52 week low at Rs 388.35 on 24 August 2021, and 52 weeks high at 858.60 on 17 January 2022.

Seaways segment continues to drive performance

According to the Motilal Oswal, "Transport Corporation Of India reported revenue of ~Rs 9.0b in 4QFY22 (+7% QoQ, flat YoY), in line with our estimate. Growth was driven by the Seaways segment (+24% YoY). EBITDA margin jumped to an all-time high level of 13.3% (+336bp YoY, +26bp QoQ). EBITDA margin improvement was driven by strong margin generated in the Seaways segment. EBITDA grew 35% YoY to Rs1.2b (9% above our estimate). The strong operating performance saw PAT grow 27% YoY to Rs 854m (our estimates of Rs 829m). The Board has declared a final dividend of Rs 2/equity share and also approved issuance of NCD/Bonds/Other similar Instruments for an amount of up to Rs 2b."

Buy for a Target Price of Rs 870/Share

"We continue to see Transport Corporation Of India as a long-term play, backed by: a) a diversified clientele, b) improving share in the LTL business in the Road Freight division and c) elevated contribution from the high-margin Seaways segment. We lower our estimates marginally and expect Transport Corporation Of India to clock Revenue and PAT CAGR of ~18% and 19% over FY22-24, respectively. The stock trades at 14x FY24E EPS. Maintain BUY with a Target Price of Rs 870 (based on 17x FY24E EPS)," the brokerage firm.

Transport Corporation Of India Ltd.

Incorporated in 1958, Transport Corporation of India (TCI group), with revenues of over Rs.4300 crore, is India's leading integrated multimodal logistics and supply chain solutions provider. It has a market cap is Rs 5,812 crore. Transport Corporation of India is mainly engaged in the Business of Freight Transport, Supply Chain Solutions and Transport through Seaways. With expertise spanning over six decades and infrastructure comprising an extensive network of 1400+ company-owned offices, 12 million sq. ft. of warehousing space, a strong team of 6000+ trained employees and a strong foundation, Transport Corporation Of India group has expanded boundaries to offer multimodal transportation solutions in both Indian and International markets.