Buy Transport Corporation of India, target price Rs 810 : ICICI Direct

ICICI Direct has buy call on Transport Corporation of India with a target price of Rs 810. The current market price of Transport Corporation of India is Rs 614.05.

Transport Corporation of India, incorporated in the year 1995, is a Small Cap company (having a market cap of Rs 4762.40 Crore) operating in Logistics sector.

Transport Corporation of India key Products/Revenue Segments include Freight & Demurrage and Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 973.75 Crore, up 3.65 % from last quarter Total Income of Rs 939.46 Crore and up 15.51 % from last year same quarter Total Income of Rs 843.00 Crore. Company has reported net profit after tax of Rs 76.42 Crore in latest quarter.

The company’s top management includes Mr.D P Agarwal, Mr.S Madhavan, Mr.Chander Agarwal, Ms.Urmila Agarwal, Mr.Ravi Uppal, Ms.Gita Nayyar, Mr.Vijay Sankar, Mr.S N Agarwal, Mr.Vineet Agarwal, Mr.Vikrampati Singhania. Company has Brahmayya & Co. as its auditors. As on 31-03-2023, the company has a total of 8 Crore shares outstanding.

Investment Rationale
Consolidated revenues are expected to grow 13% YoY, led by 5% growth in freight and10% in seaways segment (peak utilisation reached six ships) while SCM is expected to grow 25% (rebound in auto, low base effect).

Promoter/FII Holdings
Promoters held 68.99 per cent stake in the company as of 31-Mar-2023, while FIIs owned 2.77 per cent, DIIs 12.23 per cent.