₹2 to ₹708: Multibagger stock from ₹1 lakh to ₹2.83 crore in 20 years

Share Price History of Transport Corporation of India

Shares of Transport Corporation of India Limited closed on Friday 708 each, down 0.83% from the previous close 713.90. share price climbed 2.50 at current market price on January 24, 2002, represents a multibagger return and an all-time high of 28,220.00%. As a result, if a person had invested 1 lakh in TCI shares 20 years ago, today this amount will be 2.83 crores. Over the last 5 years, the stock has generated multibagger returns of 151.06% resulting in a CAGR of around 20.21%.

In the past one year, the stock has lost 70.87% and YTD is down by 3.13% in 2022. On NSE, the stock had touched a 52-week high. Another 52-week low at 858.60 (17-Jan-2022) At 403.10 (02-Sep-2021) it shows that the stock is trading down 17.54% from the high and up 75.63% from the low at the current market price. The stock is trading below the 5 day, 10 day, 20 day and 50 day EMA but above the 100 day and 200 day Exponential Moving Average (EMA) at the current market price. The RSI indicator price for Transport Corporation of India Limited (TCI) as on 02/09/2022 is 45, which indicates that the stock is neither overbought nor in oversold territory.

Q1FY23 Transport Corporation of India Result

On a standalone basis, the company’s revenue from operations reached 807 crores for the quarter ended June 2022 as compared to 610 crore in Q1FY22, a year-on-year growth of 32.2%. On a consolidated basis, revenue from operations reached 903 crores in Q1FY23 as compared to 696 crore in Q1FY22 which represents a year-on-year growth of 29.74%. On a standalone basis, EBITDA of Rs. 115 crore as compared to Rs. 82 crores in Q1 FY2022, a growth of 40% year-on-year and on a consolidated basis the company posted Rs. EBITDA of Rs. 119 crore in Q1FY23 as compared to Rs. 83 crore in Q1 FY2022 representing a year-on-year growth of 43.37%. On a standalone basis, the company has raised Rs. PAT has been registered. 77 crore as compared to Rs. 48 crore in Q1 FY2022, a growth of 58.4% per annum and on a consolidated basis the company posted Profit After Tax (PAT) or Rs. recorded a net profit of 79 crore in Q1FY23 as compared to Rs. 47 crore in Q1 FY2022, a year-on-year growth of 65.9%.

Commenting on the result, Mr. Vineet Agarwal, Managing Director, TCI said, “The company continued to demonstrate stable performance due to adherence to core business fundamentals. The impact of higher fuel prices, general inflation and volatile demand in certain sectors were the major challenges that the company prepared to deliver value to its customers.”

“The emphasis on providing seamless coastal services and rail logistics through a multimodal network has gained more traction with customers managing their costs as well as locking down their carbon emissions. TCI’s continued performance as a leader in logistics was further strengthened when it won two awards under the categories of “Best Warehouse Service Provider” and “Best Cold Chain / Refrigerated Service Provider” at the first National Logistics Excellence Awards announced by the Ministry, Government of India. received awards. commerce and industry,” he added.

Should you buy shares of Transport Corporation of India?

Taking into account the results of Transport Corporation of India (TRPC), research analysts at broking firm Motilal Oswal said, “We continue to view TRPC as a long-term play, supported by: a) a diverse clientele, b) Improvement in share in LTL business in Road Freight division, and c) Higher contribution from high-margin sewage segment.We expect TRPC to achieve Revenue/PAT CAGR of ~18%/19% during FY22-24 The stock trades at 14x FY24E EPS. We maintain our Buy rating on the stock with a Target Price (TP) of INR860 (based on 17x FY24E EPS).”

Research analysts at broking firm Sharekhan said, “Transport Corporation of India (TCI) reported better-than-expected consolidated revenue. 903 crore (29.7% yoy, up 0.6% qoq) during Q1FY2023 on a low basis with continued demand momentum from Q4FY2022 All three key verticals viz. Sewage (revenue 32.5% driven by higher freight rates), SCM (up 33.5% growth in auto sector demand led by revival) and Freight (up 30.8% y-o-y) , although down 3.6% qoq led by the MSME slowdown) performed well. However, consolidated OPM of 11.5% (down 177 bps qoq) was lower than our estimate of 12.9%. All three verticals viz. sewage (rising input cost), freight Freight (lower LTL mix) and SCM (inability to pass higher fuel cost in larger accounts) felt sequential pressure on OPM. Overall, consolidated operating profit/net profit grew by 37%/66% to Rs.104 cr/Rs 78 cr. Management has retained its topline and bottom line growth guidance for FY2023 as 10-15% yoy, which is Rs. There is a slight slowdown towards the fag end of the financial year. Its capex plan is Rs. 300 crore remains unchanged, although it has not yet been zeroed on the ship for acquisition.”

“TCI’s multi-modal capabilities are expected to benefit from GST-led logistics sector growth tailwinds, Atmanirbhar Bharat, PLI-led manufacturing push and the government’s thrust on plans like global supply chain re-alignment. The sewage division is expected to maintain a strong performance on the back of increase in freight rates, though a gradual normalization of OPM is expected. The addition of another ship will be eagerly awaited and its sea route will get a further boost. We expect TCI to be on a long-term growth path driven by positive regional fundamentals and its inherent strengths and capabilities. We maintain our Buy rating on the stock with a revised SOTP based target of Rs. 850 lowers our valuation multiples to factor in near-term macro headwinds particularly impacting the MSME segment,” added Sharekhan Ltd’s research team.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.

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