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Last Updated : Oct 13, 2012 11:20 AM IST | Source:

Buy Transport Corp; target of Rs 72: Firstcall Research

Firstcall Research is bullish on Transport Corporation of India and has recommended buy rating on the stock with a target of Rs 72 in its October 10, 2012 research report.

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Firstcall Research is bullish on Transport Corporation of India and has recommended buy rating on the stock with a target of Rs 72 in its October 10, 2012 research report.

“Transport Corporation of India Ltd India’s leading integrated supply chain and logistics solutions provider, reported its financial results for the quarter ended 30th June, 2012. The first quarter witness a healthy increase in overall sales as well as profitability of the company. The company’s net profit jumps to Rs.135.70 million against Rs.134.40 million in the corresponding quarter ending of previous year, an increase of 0.97%. Revenue for the quarter increase 9.97% to Rs4574.20 million from Rs.4159.40 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.1.87 a share during the quarter, registering 1.04% increase over previous year period. Profit before interest, depreciation and tax is Rs.386.30 millions as against Rs.344.50 millions in the corresponding period of the previous year.”

“Transport Corporation of India Ltd was incorporated in 1958 is India's leading integrated supply chain and logistics solutions provider and a pioneer in the sphere of cargo transportation in India. Leveraging on extensive infrastructure, strong foundation & skilled manpower, it offers seamless multimodal transportation solutions. An ISO 9001:2000 company is the flagship company of TCI Group and provides full truck load and less than full truck load transportation to a network of over 3000 destinations in India. The company progressed from being a “One Man, One Truck, One Office” set up to becoming a mammoth’s corporation having an office in every 100 sq km of the country. The TCI group has extensive network of over 1200 company owned offices, a huge fleet of customized vehicles and managed warehouse space of 7.5 million sq ft. With its customer-centric approach, world class resources, state-of-the-art technology and professional management, the group follows strong corporate governance principles and is committed to value creation for its stake holders and its social responsibilities. Other group companies are- TCI Freight, TCI XPS, TCI Supply Chain Solutions, TCI Global, TCI Seaways, and Transystem. TCI Foundation is the social arm of Transport Corporation of India Limited (TCIL). Incorporated in 1958, TCI Foundation was registered with the objective of bringing about socio-economic transformation in India.”

“At the current market price of Rs.64.00, the stock P/E ratio is at 8.95 x FY13E and 8.78 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.7.15 and Rs.7.29 respectively. Net Sales and operating profit of the company are expected to grow at a CAGR of 5% and 6% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 5.07 x for FY13E and 4.89 x for FY14E. Price to Book Value of the stock is expected to be at 1.13 x and 1.00 x respectively for FY13E and FY14E. We expect that the company surplus scenario is likely to continue for the next years, will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 72 for medium to long term investment,” says Firstcall Research report.

Institutional holding more than 40% in Indian cos

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To read the full report click on the attachment

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First Published on Oct 13, 2012 11:15 am
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