Transport Corp. of India Q4 - Multi-Modal Logistics Services At Play: Motilal Oswal

Motilal Oswal Report

Transport Corporation of India Ltd. is projected to achieve consistent growth ahead, driven by

1. a rising proportion of less than truckload shipments within the freight division 37% in 9MFY24, up from 35% in FY23,

2. sustained demand in the automotive sector, bolstering the supply chain division, and

3. the accumulating advantages from the expansion of multi-modal logistics.

With an expansive fleet exceeding 10,000 trucks, six cargo ships, and 14 million sq. ft. of warehouse space, the company is well-positioned for continued growth.

Additionally, Transport Corporation presence across the multimodal logistics value chain including a joint venture with Container Corporation of India Ltd. for rail transportation and a fleet of ships for waterway transportation enables it to offer efficient end-to-end logistics solutions.

While the freight services business is expected to benefit from the shift to organized sectors from the unorganized ones, the supply chain division is anticipated to experience a robust recovery, driven by continued growth momentum in the automotive sector.

We reiterate our 'Buy' rating with a revised target price of Rs 1,025 (based on a price/earning multiple of 17 times FY26E earning per share.

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