Subscribe to PRO at just Rs.33 per month. Use code SUPERPRO
Last Updated : Feb 25, 2019 03:55 PM IST | Source: Moneycontrol.com

Buy Transport Corporation; target of Rs 350: ICICI Direct

ICICI Direct is bullish on Transport Corporation has recommended buy rating on the stock with a target price of Rs 350 in its research report dated February 14, 2019.

Broker Research
  • bselive
  • nselive
Todays L/H

ICICI Direct's research report on Transport Corporation

Revenues grew 19% YoY to Rs 663 crore. The freight and shipping division grew 20% and 52% to Rs 311 crore (I-direct estimate: Rs 297 crore) and Rs 100 crore, respectively, whereas, the supply chain division grew a mere 10% to Rs 261 crore EBITDA margins contracted 34 bps to 9.1%. The margins came in above I-direct estimates mainly due to lower admin & other expense to sales ratio (3.6%). The resultant EBITDA grew 15% YoY to Rs 61 crore However, PAT grew a mere 7% YoY to Rs 30 crore as a better operational performance was negatively impacted by higher depreciation and interest expense.


We believe utilisation of the capacity in the medium term will push TCI towards blended margins of ~10% with a RoCE of ~15%. With multi-modal capabilities, we believe TCI has developed a strong moat around its business thereby delivering sustainable growth rates. On an SOTP basis, we value the company at Rs 350 per share with a BUY recommendation on the stock.

For all recommendations report, click here

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

First Published on Feb 25, 2019 03:55 pm