Dolat Capital recommended accumulate rating on Transport Corporation of India with a target price of Rs 185 in its research report dated June 05, 2020.
Dolat Capital's research report on Transport Corporation of India
TCI reported a weak quarter. Revenues declined by 10% YoY driven by sharp decline of 22% YoY in Supply Chain Solution while Seaways/Freight division reported -4%/-1% YoY decline. Freight division reported its first YoY decline since FY17 while Supply chain reported multi-year decline. Amid the pandemic, the company remains watchful over the situation and thus not given any guidance for FY21. However, the company remains optimistic over it warehouse segment. It has guided capex of Rs 1Bn in FY21.
With no substantial improvement seen till H2, we lower our EPS estimates by -36%/-26% for FY21E/FY22E. We revise our target to Rs 185 at 10xFY22E with Accumulate rating.
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