Transport Corporation of India Limited (NSE:TCI) (BSE:532349)

[SMR]

Transport Corporation of India Limited (TCI) is an India-based integrated supply chain and logistics solutions provider. The Company operates in six business divisions: TCI Global, TCI Freight, TCI Foundation, TCI Seaways, TCI Supply Chain Solutions and TCI XPS. TCI Freight offers multimodal transport solutions for cargo of any dimension. TCI XPS is a door-to-door express distribution Specialist. TCI Supply Chain Solutions provides supply chain solutions and services right from conceptualization to implementation. TCI Seaways caters to the costal cargo requirements for transporting container and bulk cargo from parts on the east coast of India to Port Blair in the Andaman and Nicobar Islands. TCI Global provides a single window advantage to its customer across all South East Asian countries. TCI Global Holdings (Mauritius) Limited, TCI Global (Shanghai) Co. Limited, TCI Transportation Company Nigeria Limited are few of the company’s subsidiaries.

Official website: www.tcil.com

[SMR]

Transport Corporation of India Limited (TCI) is an India-based integrated supply chain and logistics solutions provider. The Company operates in six business divisions: TCI Global, TCI Freight, TCI Foundation, TCI Seaways, TCI Supply Chain Solutions and TCI XPS. TCI Freight offers multimodal transport solutions for cargo of any dimension. TCI XPS is a door-to-door express distribution Specialist. TCI Supply Chain Solutions provides supply chain solutions and services right from conceptualization to implementation. TCI Seaways caters to the costal cargo requirements for transporting container and bulk cargo from parts on the east coast of India to Port Blair in the Andaman and Nicobar Islands. TCI Global provides a single window advantage to its customer across all South East Asian countries. TCI Global Holdings (Mauritius) Limited, TCI Global (Shanghai) Co. Limited, TCI Transportation Company Nigeria Limited are few of the company’s subsidiaries.

Source: http://www.angelbroking.com

[SMR]

Transport Corporation of India (TCIL) reported a subtle top-line and bottom-line growth for 1QFY2016 on a standalone basis. The top-line growth was restrained due to subdued growth in XPS and Supply Chain Solutions segments. On the operating front, the company saw pressure due to increase in employee costs and other expenses. However, higher other income boosted the overall profitability. Subdued growth in XPS and Supply Chain Solutions segment restricted the overall top-line growth: For the quarter, TCIL registered a lower growth in its standalone top-line, ie of 5.4% yoy to ~Rs548cr, on back of lower growth in XPS and Supply Chain Solutions segments. However, the Freight and Seaways segment reported a decent growth on the revenue front. Higher other income boosted the overall PAT growth: Despite of lower growth in sales and operating profit, the company reported a decent ~17% PAT growth due to lower interest cost and higher other income, for the quarter. Outlook and valuation: TCIL benefits from its pan-India scale, which gives it competitive advantage in higher margin segments of the logistics industry; as well as from its asset-light business model which cushions its profitability in cyclical downturns and gives it an attractive ROE profile. The company is well-placed to be a key beneficiary of the anticipated implementation of the GST. On its implementation, there will be a more pronounced requirement among corporates for reliable pan-India logistics players to manage their hub-and-spoke supply chains. At the current market price, TCIL trades at a P/E of 14.6x its FY2017E earnings. Hence, we recommend an Accumulate rating on the stock with a target price of Rs293.

Source: http://www.angelbroking.com/