Transport Corporation of India Ltd share Price

The logistic space has undergone healthy price/time correction over past six-eight months after strong rally in CY21 and now regaining upward momentum after a higher base formation. Within this space, we remain constructive on TCI as it has registered a breakout above the triangular consolidation of the last eight months signaling resumption of up move and offers fresh entry opportunity

Buying demand is seen emerging in the stock from the major support area if ₹ 650-700 being the confluence of the 52 weeks EMA ( currently placed at ₹655) and the rising demand line joining lows of CY20 (₹ 122) and CY21 (₹ 241) signaling strength and an overall price structure
 
We expect the stock to continue with its current positive momentum and head towards ₹ 860 levels in the coming months being the confluence of the previous all-time high of January 2022 and the 138.2% external retracement of the recent breather (₹820-664)

 

Weekly 14 periods RSI has generated a buy signal moving above its nine periods average thus validates positive bias

 

TCI is a leading provider of integrated multimodal logistics and supply chain solutions. TCI has 9000+ trucks in operation, six owned coastal ships, 12 million square feet warehousing space and 900 offices. TCI’s multimodal solutions cater to the needs of a diversified customer base and help it to capture a higher wallet share of its customers

In FY22, freight formed 47% of revenues while SCM and coastal shipping contributed 34% and 18%, respectively
 
TCI is expected to benefit from multiple positive developments across its segments. Increased demand for coastal shipping is expected to boost the utilisation of the shipping division with the company expected to induct another ship in 2HFY23E which should provide fillip to the shipping segment revenues. Also recovery in Auto sector volumes augurs well for its SCM division (80% revenues from Auto sector). Further, higher share of Less Than Truck (LTL) load (increase from 35% in FY22 to 40% in FY24E) is expected to be positive for the margin trajectory of the freight division owing to higher margin profile in the LTL segment
 
Over the last 2 years, the company has been focussing on margin improvement by controlled cost structure and providing higher value added services to its customers which has led to its RoCE improving from ~ 13% in FY21 to 20% in FY22. We expect the company to maintain its RoCE at 20-21%% over FY22-24E
 
TCI’s robust pipeline of customers and diversified services have helped the momentum in revenues and margins to continue amid a volatile environment. Due to continued strong margin performance and expected recovery of SCM segment in medium term, we maintain a positive stance on the company
 

FY23 Annual Result Announced for Transport Corporation of India Ltd.

Surface Transportation company Transport Corporation of India announced FY23 results:

• Standalone FY23 vs FY22:
  • Revenue from operations of Rs 3,492 crore, growth of 18.96% YoY
  • EBITDA of Rs 468 crore compared to Rs 422 crore in FY22
  • PAT of Rs 304 crore compared to Rs 267 crore in FY22 and grew by 13.49%
• Consolidated FY23 vs FY22:
  • Revenue from operations of Rs 3,812 crore, growth of 16.36% YoY
  • EBITDA of Rs 495 crore compared to Rs 456 crore in FY22
  • PAT of Rs 321 crore compared to Rs 293 crore in FY22 and grew by 9.48%

Commenting on the results, Vineet Agarwal, Managing Director, TCI Group, said, "In Q4 & FY’23, we have forged ahead with decent momentum across all service segments. The uptrend in the mobility sector, continued government and private capex and steady consumption trends have helped all our businesses.

Team TCI continues to achieve value for our customers through a solutions-based approach in India and the neighboring countries. Our rail and coastal multimodal services witnessed growing demand with GHG emissions savings as a clear goal. The implementation of control towers, ULIP integration, and various other digital transformation initiatives have enhanced our service offerings.

Our commitment to sustainability has been further cemented with the recent launch of TCI-IIMB Supply Chain Sustainability Lab in collaboration with IIM Bangalore. The lab aims to assist the corporates & the logistics industry in their net-zero journey.

The coming quarters will be impacted due to multiple domestic and global factors. However, the India story remains stable with continued investments in infrastructure projects. With various FTAs and PLI schemes boosting exports and manufacturing, India will become an important base in the global supply chains and move further up in the LPI index rankings. TCI remains committed to play its role by making necessary investments in ships, trains, containers, and green warehousing."

Result PDF