The logistics industry faced a tough demand environment due to high inflation and geopolitical tensions that adversely impacted EXIM trade, coupled with a continued slowdown in consumption, particularly in rural areas. Despite these challenges, the Transport Corporation of India has demonstrated resilience, with each business segment growing ~14% YoY.
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Motilal Oswal Report
Transport Corporation of India Ltd. is well-positioned for stable growth, supported by increasing less than truckload share in freight, customized customer solutions, deeper penetration into new-age sectors in the supply chain, and fleet expansion in seaways.
We expect a 15% revenue CAGR over FY24-27, driven by continued growth in the supply chain, higher LTL contribution in freight, and a strong presence across the multimodal logistics value chain, including its joint venture with Container Corporation for rail transportation.
It is the only player in the domestic logistics industry that offers services across road, rail, and sea. We expect Transport Corporation of India to deliver a CAGR of 17% in PAT over FY24- 27. We reiterate our Buy rating on the stock with a revised target price of Rs 1,330, premised on 18 times FY27E earnings per share.
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