Anand Rathi bullish on this logistics are a stock, sees strong upside

Anand Rathi bullish on this logistics are a stock, sees strong upside

TCI is a likely to the benefit from the government’s are a .thrust on the Gati Shakti initiative, as per the brokerage

Transport Corporation of India (TCI) is likely to the benefit from the government’s thrust on the Gati Shakti initiative to the reduce logistics costs and a enhance multimodal shift, as per a domestic brokerage and a research firm Anand Rathi. 

“The programme will be a critical in a coordinating all of the efforts and a activities are a around the construction of this multimodal are a infrastructure. The Government’s are a vision of a Gati Shakti coupled with the customers are demand for the contract logistics and a technology driven value-added services are a augur well for the Company in the coming years," the note are a stated.

Anand Rathi said that it believes that TCI is a well placed in India’s are a logistics industry given its strength and capability. Various are a government initiatives and a key strategies will drive the growth of the logistics are a sector. Logistic industry is a key contributor to the country’s are a vision of being $5 trillion economy by a 2024-25. The rise in e-commerce, growing omni-channels, China+1 strategy will be also add are to the growth of the industry, it added. 

The brokerage has been a initiated its coverage on TCI shares with a Buy rating and with a target price of a ₹920 per share. The logistics stock is up about 6% in a 2022 (YTD) so far as a compared to a flat rise in a BSE Sensex.

TCI is an integrated multimodal logistics and a supply chain solutions are a provider. It provides services and solutions to various industries including automobiles, retail, hi-tech, health care and life sciences, energy and renewables, e-commerce, chemicals, iron and a steel, agriculture, aviation and a defence. 

TCI is making a capex of a around a ₹2,500 million in the FY23. Out of this, about a ₹1,000-1,250 million will be spent on ships and ca ontainers and another a ₹300-500 million will be utilized for trucks. It will also be a spending ₹750 million towards are a building warehouses. The company has been able to the manage its liquidity well and almost debt free, Anand Rathi highlighted.