Transport Company of India (TCI) has developed strong capabilities in multimodal Logistics through its presence throughout main transportation modes, highlighted brokerage Motilal Oswal. The corporate has well-diversified service choices from Street freight, built-in Provide Chain options, Sea freight, to a three way partnership with CONCOR for Rail freight.
“These capabilities can be a key enabler for constant progress in volumes and earnings for TCI over the following few years. With an bettering share of the Seaways section, margin is predicted to stay at elevated ranges,” the word acknowledged.
Motilal Oswal has a Purchase ranking on the multibagger inventory with a goal worth of ₹880 per share, implying a possible upside of over 38% from the present stage. TCI shares have rallied over 145% in a 12 months, whereas the scrip is down about 12% in 2022 (year-to-date or YTD) to date.
The brokerage expects the expansion momentum to proceed, with a pickup in financial exercise, normalization in transportation exercise, and authorities reforms resulting in formalization and market share features for organized gamers like TCI.
Street freight will profit from affect of reforms like GST and e-way invoice, which is able to lead to a shift in market share in direction of organized gamers, and improved highway connectivity, lowering the turnaround time. Additional, the Provide Chain section is predicted to develop nicely as points associated to the Auto sector stabilize. The growing penetration of provide chain choices into different sectors will help progress, the brokerage highlighted.
“The Seaways section is predicted to develop nicely, with increased volumes and improved realization. The acquisition of a brand new ship in FY23 will assist enhance the share of the excessive margin Seaways section, which is able to help earnings progress,” Motilal Oswal’s word added.
The views and proposals made above are these of particular person analysts or broking corporations, and never of Mint.
Supply: Live Mint