Sharekhan's research report on Transport Corporation of India
TCI has seen m-o-m improvement in demand during June 2023. Macro indicators highlight a better domestic trade environment in May 2023 with y-o-y and m-o-m growth in May 2023. The management retained a 10-15% y-o-y revenue and net profit growth for FY2024, led by 20% y-o-y revenue growth in SCM, 10-15% y-o-y in freight and flat Seaways business. The Transystem JV is expected to post higher double-digit y-o-y revenue growth for FY2024, after a strong 48% y-o-y revenue growth posted in FY2023.
Outlook
We retain a Buy rating on TCI Limited with a revised PT of Rs. 860, factoring upwardly revised valuation for its JV and its steady earnings growth trajectory aided by multi-modal capabilities.
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