Dolat Capital recommended accumulate rating on Transport Corporation of India with a target price of Rs 314 in its research report dated November 05, 2018.
Dolat Capital's research report on Transport Corporation of India
For Q2FY19, the revenue grew by 19.2% YoY to ` 6,202.6mn; grew by 6.7% QoQ from ` 5815.4mn. EBITDA grew 5.8%YoY to ` 531mn, grew by 3.5% QoQ from ` 513.2mn. EBITDA margins declined by 108bps to 8.6%, decline by 26 bps QoQ from 8.8%. Net Profit grew by 1.3% YoY to ` 258.7mn; declined by 8.3% QoQ from ` 282mn due increase in interest and depreciation cost. Freight revenues were up 27.2% YoY to ` 2,931.9mn; grew 5.5% QoQ from ` 2,781.9mn driven by volumes and value growth and improved revenues from LTL business. The management expects the freight business to see moderate growth of 15-20% YoY. Maintained its guidance for revenue growth of 15-20% YoY and RoCE of +15% for FY19. The board approved interim dividend of ` 0.8/share (FV of ` 2/-).
We are likely to see earnings CAGR growth of ~20% FY18-20E and continue to maintain our Accumulate rating with TP ` 314.
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