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Transport Corporation of India Ltd logo

Transport Corporation of India Ltd

NSE: TCI BSE: 532349

1004.50

(-3.88%)

Mon, 02 Mar 2026, 08:24 am

Transport Corporation of India Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are thoroughly covered by earnings (10.3x coverage).
  • Dividends after 3 years are expected to be thoroughly covered by earnings (9.1x coverage).
  • Transport Corporation of India's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Transport Corporation of India's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Performance (ROE) is expected to be above the current IN Logistics industry average.
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Cons

  • Cash flow for Transport Corporation of India is expected to decrease over the next 2 years.
  • Transport Corporation of India's earnings are expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).
  • Transport Corporation of India's earnings growth is positive but not above the India market average.
  • Transport Corporation of India's earnings growth is positive but not above the low risk savings rate of 7.2%.
  • Transport Corporation of India's earnings are expected to decrease over the next year.
  • Transport Corporation of India's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Transport Corporation of India is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • A decline in Transport Corporation of India's performance (ROE) is expected over the next 3 years.
  • Transport Corporation of India's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Transport Corporation of India's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).
  • Transport Corporation of India's revenue growth is positive but not above the India market average.

health

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Pros

  • Transport Corporation of India is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Transport Corporation of India is profitable, therefore cash runway is not a concern.
  • Transport Corporation of India is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (68.5%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 1.9x debt.
  • Transport Corporation of India's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (51.3% vs 35.8% today).
  • Interest payments on debt are well covered by earnings (EBIT is 5.2x coverage).
  • Transport Corporation of India's level of debt (35.8%) compared to net worth is satisfactory (less than 40%).
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Cons

  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Transport Corporation of India board of directors is about average.
  • Dharmpal's compensation has been consistent with company performance over the past year, both up more than 20%.
  • More shares have been bought than sold by Transport Corporation of India individual insiders in the past 3 months.
  • The tenure for the Transport Corporation of India management team is about average.
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Cons

  • Dharmpal's remuneration is higher than average for companies of similar size in India.

past

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Pros

  • Transport Corporation of India's year on year earnings growth rate has been positive over the past 5 years.
  • Transport Corporation of India used its assets more efficiently than the IN Logistics industry average last year based on Return on Assets.
  • Transport Corporation of India has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
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Cons

  • Transport Corporation of India's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Transport Corporation of India has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Transport Corporation of India's 1-year earnings growth is negative, it can't be compared to the IN Logistics industry average.

value

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Pros

  • Transport Corporation of India is good value based on earnings compared to the IN Logistics industry average.
  • Transport Corporation of India is good value based on earnings compared to the India market.
  • NSEI:TCI is up 5.3% along with the Logistics industry (4.7%) over the past month.
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Cons

  • Transport Corporation of India's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
  • Transport Corporation of India's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
  • Transport Corporation of India is overvalued based on assets compared to the IN Logistics industry average.
  • Transport Corporation of India is poor value based on expected growth next year.
  • TCI underperformed the Logistics industry which returned -35% over the past year.
  • TCI underperformed the Market in India which returned -14.5% over the past year.
  • NSEI:TCI is up 5.3% underperforming the market in India which returned 8% over the past month.

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