Shares of Transport Corporation of India were in focus today after financial services firm Motilal Oswal Financial Services assigned a target price of Rs 810, a 26 percent upside to the market price of Rs 643. The new target is 5.59 per cent lower to the 52-week high of Rs 858 hit on January 17, 2022 . The brokerage cited strong automotive demand, demand for coastal shipping and traction in multimodal logistics behind the bullish expectations from the firm.
The stock of logistics and supply chain management company closed flat at Rs 637.85 today, down 0.75% to the previous close of Rs 642.70 on BSE. The stock has fallen after two sessions of gain. Transport Corp stock opened with a gain of 3.31% at Rs 664, an intraday high on BSE. The logistics stock stands lower than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
Transport Corp stock has fallen 9.5% in one year and lost 14.62% since the beginning of this year. In a month, the stock has declined 17.66%.
A total of 5,311 shares changed hands amounting to a turnover of Rs 33.97 crore on BSE. Market cap of the firm stood at Rs 4,944. 71 crore
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Motilal Oswal said, “We maintain our positive stance on Transport Corporation as it is expected to benefit from: a) strong automotive demand, coupled with the addition of new clientele, driving 3PL growth, b) sustained thrust on demand for coastal shipping, c) traction in multimodal Logistics and, d) increasing contribution of LTL in the Freight segment, which will be margin-accretive.”
The financial services firm expects a growth in revenue/EBITDA/PAT of 18%/13%/13% over FY22-24, accounting for an increasing share of less than truck load (LTL) services in the overall freight revenue, new clientele in 3PL, and sustained trust for coastal shipping.
The logistics firm reported a 4.14% fall in its consolidated net profit at Rs 73 crore for the quarter ended September against Rs 76.16 crore profit in the corresponding quarter a year ago. However, total income rose 13.45% to Rs 939.46 crore in Q2 against Rs 826.06 crore in the September quarter of the previous fiscal.
Transport Corporation of India Limited is a provider of integrated multimodal logistics and supply chain solutions. The company also offers multimodal transportation solutions. The company operates through four segments: Freight Division, Supply Chain Solutions Division, Seaways Division and Energy Division. The company operates through three business divisions: TCI Freight, TCI Supply Chain Solutions and TCI Seaways.
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