Mehabe score: 4 G Factor: 3 Piotski Score: 6 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 6.
Description
Transport Corporation of India is engaged in the Business of Freight Transport,Supply Chain Solutions and Transport through Seaways.Site:TCIMain Symbol:TCI
Stock trades at 399.0, above its 50dma 381.4. It also trades above its 200dma 297.66. The stock remains bullish on techicals
The 52 week high is at 510.00 and the 52week low is at 160.40
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– The company has delivered a poor sales growth of 10.17% over past five years.
-Tax rate seems low
-Dividend payout has been low at 11.15% of profits over last 3 years
Competition
– The industry trades at a mean P/E of 32.1x. Snowman Logistic trades at the industry’s max P/E of 14662.0x. TCI trades at a P/E of 19.5x
– Industry’s mean G-Factor is 4.3 while the mean Piotski score is 7.0. TCI has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is -1.2%. The max 1- month return was given by Allcargo Logist.: a return of 10.36 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 893.0 cr compared to Rs 668.0 cr for period ended Mar 2020, a rise of 33.7%
Operating Profits reported at Rs 89.0 cr for period ended Mar 2021 vis-vis 59.0 for period ended Mar 2020 .
Operating Margins expanded 113.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 8.38 compared to Rs 5.43 for previous quarter ended Dec 2020 and Rs 4.69 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2802.0 cr for period ended Mar 2021 vis-vis sales of Rs 2718.0 cr for the period ended Mar 2020, a growth of 3.0%. The 3 year sales cagr stood at 6.0%.
Net Profit reported at Rs 147.0 cr for period ended Mar 2021 vis-vis sales of Rs 142.0 cr for the period ended Mar 2020, rising 3.4%.
Company recorded a Net Profit CAGR of 6.1% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 305.0 cr for period ended Mar 2021 vis-vis Rs 252.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 14.0% compared to 16.0% over the last 3 Years. – The stock has given a return of 133% on a 1 Year basis vis-vis a return of 12% over the last 3 Years. – The compounded sales growth on a TTM bassis is 3% vis-vis a compounded sales growth of 6% over the last 3 Years. – The compounded profit growth on a TTM basis is 5% vis-vis a compounded profit growth of 9% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 2.42% vis-vis 1.7% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 18.48% vis-vis 19.42% for Mar 2021
Conclusion
– has reduced debt. – The company has delivered a poor sales growth of 10.17% over past five years.
-Tax rate seems low
-Dividend payout has been low at 11.15% of profits over last 3 years
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 381.4 and is trading at 399.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
