Tuesday, September 14, 2021

FUN-TECH Analysis of Transportation Corporation of India - CMP – 433.60 Rs

FUN-TECH Analysis of Transportation Corporation of India - CMP – 433.60 Rs 

Company Basic Information - Transport Corporation of India Limited is headquartered in Gurugram, Haryana, India. It was founded in 1958 by Mr. Prabhu Dayal Agarwal at Kolkata, India. 

Sector - Logistic                Industry – Logistic             Market Cap – 3349.96 Crore (Small Cap)


 
 





Impacting News  

1.     Logistic Industry grew very effectively amid COVID, expectation are there for further increase in Business

2.     FIIs have raised their stake in company by 0.72 %, where they were decreasing since June’19

Technical Views           

1.     Price is consolidating in a range waiting for breakout after steep rise.

2.     In a Daily Time Frame, we get to see a Double Bottom pattern in formation which may result in breakout after complete formation of pattern.

3.     Volume is contracting gradually

4.     Logistic Industry is an industry of a year growth of which in COVID is remarkable.

5.     Price is taken support median of Bollinger Band, RSI and MACD are in bullish area but not acting like one, it might take some more time before breakout, however formation shows immediate breakout.

6.  Along with Double Bottom pattern there is a flag pattern observed which can breakout and give 220 Rs if volume supports the game along with results.

Fundamental Views

1.     Stock provides good return than FD.

2.     TCI Increasing dividend continuously from last 5 years.

3.     Its Price to Book Ratio is 2.8 where as Industry's Price to Book Ratio is 4.40.

4.     FII/FPI increased holding in last quarter by 0.72%.

5.     Over the last 5 years free cash flow growth

·         FY -17 -  (16.52) Crore

·         FY -18 -  (2.32) Crore

·         FY -19 -   14.23 Crore

·         FY -20 -   95.73 Crore

·         FY -21 -   149.46 Crore

 

Forecasting For FY-21-22

1.     Return expectation - 15% Upside is expected

2.     Revenue Growth - 11% Upside is expected

3.     Earning Growth - 25% Upside is expected

Action Plan 

1.     Investment - Buy some here and add in DIP till 390 and stop at 375, hold it for 3-6 months for Target of 665.

2.     Trading -  Buy some here and add in DIP till 390 and stop at 380 , hold it for 1-1.5 months for Target of 465-485-505-535.


https://www.tradingview.com/x/NG4gilj8/

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