At rs 290, tCI Is a good buy

climate are all expected to transform the industry and drive growth over the next few years. The logistics firms are moving from a traditional set-up to the integration of IT and technology to their operation, to reduce the costs incurred, as well as to meet the service demands. Apart from hard infrastructure, the growth of the Indian logistics sector depends upon its soft infrastructure like education, training and policy framework. Logistics provider TCI reported stellar Q2FY18 numbers, with profit after tax growing 29% to Rs 25.6 crore, as against Rs 19.7 crore in the corresponding quarter of the previous fiscal. The total revenue grew by 16.6% to Rs 527.4 crore during the quarter, as against Rs 452.3 crore in the year ago period. Also, the management commented on the quarterly earnings that TCI witnessed good growth on the back of continued focus on high margins businesses and providing specialised integrated supply chain solutions. In fact, GST readiness has become an opportunity for the company to stand out from the rest of the industry and post higher volumes for the next few quarters. The TCI stock, currently quoting at Rs 290 on the stock exchanges is a good fundamental buy for six months’ investment horizon, with a price appreciation target of Rs 340. Rajiv Kapoor is a share BrokEr, CErtIfiED mutuAl FunD ExpErt AnD MDRT InsurAnCE AGEnt.