Buy Transport Corporation of India

Buy Transport Corporation of India, tgt Rs 145 by Ganesh | Hide replies

Gaining strength in the express cargo services.
TCI operates in express distribution through its brand XPS, which is the fastest growing brand in that business. Brand XPS boasts of excellent quality service and integrated solutions to provide efficient key customer management. The company has created super hubs in the north and is in the process of establishing them in the south. TCI focuses on high value-added and high yield air and express services. Going forward we expect the revenues of the XPS segment to grow at CAGR of 27.5% over FY07 - FY09E.
Supply Chain solutions to be major growth driver.
TCI provides the entire gamut of supply chain solutions like distribution, clearing and forwarding, warehousing, cold chain logistics and other value-added services consultancy. Strong growth is expected from this segment due to larger volumes from existing clients. New clients are being added in a variety of verticals that include retail and cold chain solutions. Going forward we expect the revenues of the supply chain solutions segment to grow at CAGR of 44.9% over FY07 - FY09E.
Expanding operations in coastal shipping.
Currently, TCI has a fleet size of five vessels with a total capacity of 16444 DWT. The company also has plans to buy one ship every year for the next three years. All of them would be second-hand ships. This is expected to lead to strong growth in terms of revenues form the coastal shipping business.