Buy Transport Corporation of India; target of Rs 1100: Motilal Oswal

Moneycontrol • 1 day ago

Original source

Key Investment Pillars

  • The Seaways segment is expected to drive growth, with revenue increasing by 29% YoY in 2QFY27, despite margin contraction due to higher bunker prices.
  • The Supply Chain segment is expected to continue its expansion, with revenue growing by 11% YoY in 2QFY27, driven by demand from the automotive sector.
  • The Freight segment is expected to deliver steady growth, with revenue increasing by 12% YoY in 2QFY27, driven by healthy volume growth and expansion of the LTL network.
  • The company's focus on increasing its capacity in warehousing and fleet is expected to drive long-term growth.

Thesis Validation Checklist

  • Investors should watch for steady growth in the Seaways segment, driven by pricing power and expansion of the fleet.
  • The Supply Chain segment's ability to maintain its growth momentum, driven by demand from the automotive sector, will be crucial.
  • The Freight segment's expansion of its LTL network and ability to pass on fuel price increases to customers will be key to margin improvement.
  • The company's ability to manage its working capital and maintain a healthy balance sheet will be important for long-term sustainability.