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Last Updated on: 08 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Transport Corporation of India Ltd (TCI): Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 8, 2024, 10:06 am

Market Cap 9,361 Cr.
Current Price 1,202
High / Low1,250/686
Stock P/E24.6
Book Value 256
Dividend Yield0.78 %
ROCE19.9 %
ROE19.0 %
Face Value 2.00
PEG Ratio1.26

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Transport Corporation of India Ltd (TCI)

Competitors of Transport Corporation of India Ltd (TCI)

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Frontline Corporation Ltd 24.5 Cr. 49.081.2/32.316.7 25.00.00 %2.29 %8.31 % 10.0
Coastal Roadways Ltd 16.5 Cr. 39.855.4/22.115.4 49.70.00 %6.03 %5.70 % 10.0
Balurghat Technologies Ltd 61.9 Cr. 34.041.5/17.027.9 8.400.00 %15.6 %17.5 % 10.0
ABC India Ltd 66.6 Cr. 123165/87.034.2 83.40.41 %8.21 %5.07 % 10.0
Transport Corporation of India Ltd (TCI) 9,361 Cr. 1,2021,250/68624.6 2560.78 %19.9 %19.0 % 2.00
Industry Average4,768.50 Cr215.9124.2672.990.17%9.54%10.42%8.86

All Competitor Stocks of Transport Corporation of India Ltd (TCI)

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales6968258388989039339679799509941,0021,0791,045
Expenses620721728778799836852871849893902970941
Operating Profit7610510912010497114108101100100109104
OPM %11%13%13%13%12%10%12%11%11%10%10%10%10%
Other Income8101317152017192632283432
Interest5332233223444
Depreciation25262637293031313131333329
Profit before tax5486949788859894949791106103
Tax %12%11%12%11%11%14%11%12%11%10%12%3%11%
Net Profit477683867973868283888010392
EPS in Rs6.089.7610.6011.0410.069.3311.0510.5110.6011.2110.2213.1311.69

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales2,1312,2262,4171,7271,9432,3502,7542,7182,8023,2593,7834,024
Expenses1,9552,0572,2221,6391,7802,1332,5042,4762,5392,8473,3573,613
Operating Profit17517019588163216250241263412425411
OPM %8%8%8%5%8%9%9%9%9%13%11%10%
Other Income7989227374434314470119
Interest353334253032373427131013
Depreciation464755525969778293113121128
Profit before tax10199114103100152179159174330364388
Tax %31%28%29%15%19%19%19%10%14%11%12%9%
Net Profit7072828881124145143150293321354
EPS in Rs9.559.8210.7511.4610.5316.0818.8418.5319.0837.4540.9145.12
Dividend Payout %16%19%14%13%10%10%10%11%13%11%17%16%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)2.86%13.89%7.32%-7.95%53.09%16.94%-1.38%4.90%95.33%9.56%10.28%
Change in YoY Net Profit Growth (%)0.00%11.03%-6.57%-15.27%61.04%-36.15%-18.31%6.27%90.44%-85.78%0.72%

Transport Corporation of India Ltd (TCI) has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:6%
5 Years:8%
3 Years:13%
TTM:9%
Compounded Profit Growth
10 Years:17%
5 Years:20%
3 Years:31%
TTM:12%
Stock Price CAGR
10 Years:23%
5 Years:34%
3 Years:16%
1 Year:36%
Return on Equity
10 Years:17%
5 Years:19%
3 Years:20%
Last Year:19%

Last Updated: Unknown

Balance Sheet

Last Updated: October 15, 2024, 2:40 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital151515151515151515151616
Reserves4224766055606317468771,0091,1541,4151,6861,988
Borrowings3543363203544214404704222979692194
Other Liabilities174174197129162196254237272301307304
Total Liabilities9651,0011,1371,0581,2291,3981,6161,6831,7391,8272,1012,501
Fixed Assets418432521532542626727772805801791862
CWIP51871257564225726109
Investments8877687104117135150193286543
Other Assets534543602438544611768755779826998988
Total Assets9651,0011,1371,0581,2291,3981,6161,6831,7391,8272,1012,501

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 10415812510999157179243305368361299
Cash from Investing Activity -61-98-121-101-122-131-158-135-107-76-193-404
Cash from Financing Activity -28-63-4-1232-30-24-104-176-258-6618
Net Cash Flow15-3-1-48-4-332134102-87

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-179.00-166.00-125.00-266.00-258.00-224.00-220.00-181.00-34.00316.00333.00217.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days686266696766686567575454
Inventory Days
Days Payable
Cash Conversion Cycle686266696766686567575454
Working Capital Days484348535656555861555058
ROCE %18%16%17%10%13%16%17%14%15%23%22%20%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters66.54%66.54%66.57%66.57%69.03%69.03%69.00%68.95%68.95%68.92%68.92%68.93%
FIIs2.08%2.31%2.66%3.11%3.32%3.30%2.77%2.54%2.58%2.61%2.67%2.92%
DIIs12.68%12.62%12.25%12.04%11.81%11.70%12.23%12.75%12.87%12.81%12.18%12.18%
Public18.70%18.53%18.52%18.28%15.82%15.97%16.01%15.76%15.61%15.65%16.22%15.97%
No. of Shareholders28,56338,53838,39841,45750,64750,42052,66249,88042,38341,16443,73643,822

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Small Cap Fund - Regular Plan4,125,4781.35387.26238,7862024-11-061627.69%
HDFC Childrens Gift Fund - Regular Plan1,080,1281.2101.39238,7862024-11-06352.34%
Tata Small Cap Fund782,3321.273.44238,7862024-11-06227.63%
HDFC Retirement Savings Fund - Equity - Regular Plan641,6211.3260.23238,7862024-11-06168.7%
Sundaram Services Fund353,6531.0333.2238,7862024-11-0648.1%
LIC MF Large & Mid Cap Fund344,8461.2732.37238,7862024-11-0644.42%
Tata Multicap Fund290,0000.9327.22238,7862024-11-0621.45%
Bandhan Infrastructure Fund238,7862.3222.41238,7862024-11-060%
Tata Infrastructure Fund - Regular Plan132,8000.7312.47238,7862024-11-06-44.39%
LIC MF Multi Cap Fund112,6311.2110.57238,7862024-11-06-52.83%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)45.1840.9637.5019.1218.54
Diluted EPS (Rs.)45.0640.9637.3419.0718.54
Cash EPS (Rs.)52.3651.2648.9128.9426.10
Book Value[Excl.RevalReserv]/Share (Rs.)262.02223.28188.51152.83134.01
Book Value[Incl.RevalReserv]/Share (Rs.)262.02223.28188.51152.83134.01
Revenue From Operations / Share (Rs.)517.62487.66421.16363.48353.76
PBDIT / Share (Rs.)58.7058.5755.4337.1833.93
PBIT / Share (Rs.)42.1742.9140.8225.1523.19
PBT / Share (Rs.)40.1641.2139.1619.9917.44
Net Profit / Share (Rs.)35.8335.6134.2916.9015.36
NP After MI And SOA / Share (Rs.)45.1240.9137.4519.0818.53
PBDIT Margin (%)11.3312.0013.1610.239.59
PBIT Margin (%)8.148.799.696.916.55
PBT Margin (%)7.758.459.295.494.92
Net Profit Margin (%)6.927.308.144.644.34
NP After MI And SOA Margin (%)8.718.388.895.255.23
Return on Networth / Equity (%)17.5018.6420.2412.5713.90
Return on Capital Employeed (%)14.7818.1620.4814.5914.68
Return On Assets (%)14.0215.1015.858.468.45
Long Term Debt / Equity (X)0.050.020.010.090.14
Total Debt / Equity (X)0.070.030.040.200.35
Asset Turnover Ratio (%)1.751.931.721.501.58
Current Ratio (X)4.543.862.851.771.50
Quick Ratio (X)4.513.842.821.751.49
Dividend Payout Ratio (NP) (%)15.4917.1014.146.2710.79
Dividend Payout Ratio (CP) (%)11.3412.3610.173.856.83
Earning Retention Ratio (%)84.5182.9085.8693.7389.21
Cash Earning Retention Ratio (%)88.6687.6489.8396.1593.17
Interest Coverage Ratio (X)34.3946.2533.4210.747.59
Interest Coverage Ratio (Post Tax) (X)22.1729.4721.676.374.73
Enterprise Value (Cr.)6365.134777.984651.772178.701793.82
EV / Net Operating Revenue (X)1.581.261.430.770.66
EV / EBITDA (X)13.9510.5210.857.606.88
MarketCap / Net Operating Revenue (X)1.561.291.420.700.53
Retention Ratios (%)84.5082.8985.8593.7289.20
Price / BV (X)3.132.863.241.691.41
Price / Net Operating Revenue (X)1.561.291.420.700.53
EarningsYield0.050.060.060.070.09

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Transport Corporation of India Ltd (TCI) as of November 8, 2024 is: 1,205.88

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 8, 2024, Transport Corporation of India Ltd (TCI) is Undervalued by 0.32% compared to the current share price ₹1,202.00

Intrinsic Value of Transport Corporation of India Ltd (TCI) as of November 8, 2024 is: 1,440.80

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 8, 2024, Transport Corporation of India Ltd (TCI) is Undervalued by 19.87% compared to the current share price ₹1,202.00

Last 5 Year EPS CAGR: 19.48%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 16.75%, which is a positive sign.
  2. The company has higher reserves (964.08 cr) compared to borrowings (316.33 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (2.17 cr) and profit (188.58 cr) over the years.
  1. The stock has a high average Working Capital Days of 53.42, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 63.58, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Transport Corporation of India Ltd (TCI):
    1. Net Profit Margin: 6.92%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 14.78% (Industry Average ROCE: 9.54%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 17.5% (Industry Average ROE: 8.93%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 22.17
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 4.51
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 24.6 (Industry average Stock P/E: 24.26)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.07
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Transport Corporation of India Ltd. is a Public Limited Listed company incorporated on 02/01/1995 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L70109TG1995PLC019116 and registration number is 019116. Currently Company is involved in the business activities of Freight transport by road. Company’s Total Operating Revenue is Rs. 2904.56 Cr. and Equity Capital is Rs. 15.47 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Transport - RoadFlat Nos. 306 & 307, 1-8-201 to 203, 3rd Floor, Secunderabad Telangana 500003secretarial@tcil.com
http://www.tcil.com
Management
NamePosition Held
Mr. D P AgarwalChairman & Managing Director
Mr. Vineet AgarwalManaging Director
Mr. S N AgarwalNon Executive Director
Ms. Urmila AgarwalNon Executive Director
Mr. Chander AgarwalNon Executive Director
Mr. Avinash GuptaIndependent Director
Ms. Gita NayyarIndependent Director
Mr. Vikrampati SinghaniaIndependent Director
Mr. Ravi UppalIndependent Director
Mr. Vijay SankarIndependent Director

FAQ

What is the latest fair value of Transport Corporation of India Ltd (TCI)?

The latest fair value of Transport Corporation of India Ltd (TCI) is ₹1205.88.

What is the Market Cap of Transport Corporation of India Ltd (TCI)?

The Market Cap of Transport Corporation of India Ltd (TCI) is 9,361 Cr..

What is the current Stock Price of Transport Corporation of India Ltd (TCI) as on 08 November 2024?

The current stock price of Transport Corporation of India Ltd (TCI) as on 08 November 2024 is 1,202.

What is the High / Low of Transport Corporation of India Ltd (TCI) stocks in FY 2024?

In FY 2024, the High / Low of Transport Corporation of India Ltd (TCI) stocks is 1,250/686.

What is the Stock P/E of Transport Corporation of India Ltd (TCI)?

The Stock P/E of Transport Corporation of India Ltd (TCI) is 24.6.

What is the Book Value of Transport Corporation of India Ltd (TCI)?

The Book Value of Transport Corporation of India Ltd (TCI) is 256.

What is the Dividend Yield of Transport Corporation of India Ltd (TCI)?

The Dividend Yield of Transport Corporation of India Ltd (TCI) is 0.78 %.

What is the ROCE of Transport Corporation of India Ltd (TCI)?

The ROCE of Transport Corporation of India Ltd (TCI) is 19.9 %.

What is the ROE of Transport Corporation of India Ltd (TCI)?

The ROE of Transport Corporation of India Ltd (TCI) is 19.0 %.

What is the Face Value of Transport Corporation of India Ltd (TCI)?

The Face Value of Transport Corporation of India Ltd (TCI) is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Transport Corporation of India Ltd (TCI). Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE