Motilal Oswal has reiterated a BUY rating for Transport Corporation of India (TRPC) with a target price of INR 1,290, highlighting the company's strong performance in the first half of FY25.

TRPC reported a year-on-year revenue growth of 11%, driven by solid contributions from its Freight, Supply Chain, and Seaways segments, which grew by 11%, 13%, and 17% respectively. Despite facing margin pressures, the company is expected to continue growing, particularly in its Seaways division, where high capacity utilization is anticipated.

The supply chain business has shown a significant 16% revenue CAGR from FY21 to FY24, supported by strong automotive demand. This segment is expected to maintain double-digit growth rates, supported by stable demand and the retention of existing clients. Additionally, the freight division is set to benefit from an increased contribution of Less Than Truckload (LTL) shipments and a shift from the unorganized sector.

Overall, TRPC is projected to achieve a 15% revenue CAGR from FY24 to FY27, driven by its diversified logistics portfolio and strategic partnerships, including a joint venture with Container Corporation for rail transportation.