Transport Corporation Of India - A Stable Play; ICICI Securities Initiates Coverage With A Buy

ICICI Securities Report

We see Transport Corporation of India Ltd. as a good opportunity in the current subdued operating environment for the logistics sector. Key points:

1. In the process of refining freight mix in favor of higher-margin less than truck load business;

2. Capex in high-margin sea freight segment likely to improve overall margins;

3. Improving performance of JVs expected to result in further earnings improvement; and

4. Trading at relatively attractive valuation compared to peers.

Going ahead, we believe that higher LTL proportion in freight business and addition of two new ships (despite seaways margin receding) in seaways division are the two main growth drivers.

Factoring in favorable risk-reward at current valuations versus peers, we initiate coverage on Transport Corporation of India with a Buy rating and target price of Rs 1,200 based on 22 times FY26E EPS.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.