Transport Corporation of India - Q1FY21 Result Update - ICICI Securities

TCI fared better than our estimates on all fronts. What surprised us is the effort it showed in maintaining margins, even in a scenario of weak operating leverage. It has a diversified portfolio of value-added services across varied customers & industries, lowering volatility in gross margins. For the year, the management expects demand from the e-commerce, FMCG, automobile sector, agriculture, pharmaceuticals and the chemical sector. TCI's ability to provide multi modal integrated logistics solutions helped it to continue serving existing customers as well as acquire several new engagements.

Valuation & Outlook

With the ability to serve customers via multimodal capabilities (road, rail, ship) and a pan-India presence with 25 IT enabled hub centres, centralised vehicle tracking and mobile app-controlled loading, unloading and dispatch of cargo, TCI has transitioned to the new business landscape where customers demand greater digitisation, live tracking and online presence. On EBITDA margin front, we expect the positive momentum to continue driven by higher share of LTL business in freight division, enhanced utilisation and better pricing in the shipping division. Hence, it has the ability to deliver sustainable growth rates. On an SOTP basis, we value the stock at Rs. 260/share and maintain our BUY recommendation on the stock.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_TransportCorp_Q1FY21.pdf

Shares of TRANSPORT CORPORATION OF INDIA LTD. was last trading in BSE at Rs.210 as compared to the previous close of Rs. 210. The total number of shares traded during the day was 9181 in over 592 trades.

The stock hit an intraday high of Rs. 221.65 and intraday low of 203. The net turnover during the day was Rs. 1909080.

Source : Equity Bulls

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