Motilal Oswal has reiterated a BUY rating for Transport Corporation of India (TRPC) with a target price of Rs 1,290, citing a robust 11% YoY revenue growth in 1HFY25 across its diversified service offerings. The company is expected to maintain a 15% revenue CAGR over FY24-27, driven by strong demand in the supply chain and freight divisions, alongside a strategic focus on multimodal logistics.
Transport Corporation of India (TCI) reported a robust Q2 FY25, with a 22% growth in its seaways business, driven by improved realisations. While the share of LtL revenues in freight has stagnated at 35-36%, the supply-chain segment is projected to grow by 10-12%. TCI maintains a cash surplus exceeding Rs 280 crore, although valuations remain high despite a positive medium-term outlook.
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