Buy Transport Corporation of India; target of Rs 1420: Motilal Oswal

Motilal Oswal is bullish on Transport Corporation of India recommended buy rating on the stock with a target price of Rs 1420 in its research report dated July 21, 2025.

Broker Research

July 23, 2025 / 15:23 IST

buy

26 Aug, 2025 12:21

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Motilal Oswal's research report on Transport Corporation of India

Transport Corporation of India Ltd (TRPC) is well-positioned to benefit from structural tailwinds like the China+1 strategy, the PLI scheme, and rising infrastructure investments. Its multimodal capabilities and focus on highgrowth sectors strengthen its competitive edge. Despite macro challenges, TRPC has delivered 20 consecutive quarters of YoY growth, with all segments posting double-digit CAGRs over FY21-25—led by ~16% CAGR in the supply chain business—highlighting its strong execution and resilience. In FY25, TRPC delivered steady performance across its key business segments. The Freight division grew 11% YoY, overcoming challenges from weak rural demand and geopolitical tensions, supported by robust network expansion and a sharper focus on high-margin LTL services.

Outlook

We expect TRPC to post a 15% revenue CAGR over FY25-27, led by continued growth in the supply chain division, a rising proportion of LTL shipments within the freight division, and a presence across the multi-modal logistics value chain (including a JV with Container Corporation for rail transportation). We reiterate our BUY rating with a revised TP of INR1,420 (based on 21x FY27 EPS).

For all recommendations report, click here