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Buy Transport Corporation of India; target of Rs 280: ICICI Direct

ICICI Direct is bullish on Transport Corporation of India has recommended buy rating on the stock with a target price of Rs 280 in its research report dated November 04, 2020.

November 07, 2020 / 01:39 PM IST
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ICICI Direct's research report on Transport Corporation of India

TCI reported strong Q2FY21 results. Revenues grew strong QoQ (up 87%), which led to normalisation of revenues YoY to Rs 612 crore. SCM reported highest recovery QoQ (up 134% QoQ, 2% YoY), followed by freight division (up 76% QoQ, down 9% YoY) and shipping division (up 37% QoQ, 9% YoY). The company continued to show resilience on the margins front. EBITDA margins expanded 63 bps YoY to 9.6% mainly due to lower employee and also other expenses to sales ratio (lower than estimates by 160 bps, 80 bps, respectively) although GMs negated the improvement, to an extent. The resultant EBITDA grew 4% YoY to Rs 59 crore. Further, PAT grew 29% YoY to Rs 32 crore (exceptional expense of Rs 10 crore in the base quarter).


Also, TCI has transitioned to the post-Covid business landscape where customers demand greater digitisation, live tracking and online presence. On an SOTP basis, we value the stock at Rs 280/share and maintain our BUY rating on the stock.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Nov 7, 2020 01:39 pm

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