Logistics sector

Stock Opportunities
41

Does this means that if before de merger date if someone purchased a share of TCI @375

2TCI share = 1 TCI Express share

2*375 = 750 is the cost of two TCI share

750*0.8057/2= 301 is the cost of acquisition of one TCI share

750*0.1934 = 145.72 is the cost of the acquisition of one TCI express share

42

It might sound stupid, but what happens to a person who’s holding only One share of TCI on cutoff date?

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This calculation looks about right. Similar example can be found here — http://www.dlink.co.in/pdf/Circular_Cost%20of%20Aquisition.pdf

Also http://elagaan.com/tax-guide/what-cost-acquisition lists a formula - unfortunately I am not able to find the networth of TCI at the end-of-day of demerger (25 Aug 2016) occurred.

If one has indeed bought shares at 375 - then as per the company the share (post demerger) is 301 - which would mean, if the buyer has conviction, in the current market, it is a bargain (@~190). Popular expectation was that TCI would hover around ~270 post event, but it has not. Possibilities are that, trading houses who play on demergers, would have bought shares at ~350 and dumped their TCI shares for tax breaks (350-200 shown as loss), and would sell TCI-Express at a higher margin (when it lists).

However, I have read that period of holding of the demerged (TCI) has to be considered when accounting for STCG or not, on sale of TCI-Express. Would be good to know, if anyone has an opinion on this.

45

When TCI XP Shares will be listed

46

Will be listed on Dec 15.

47

Can you share the link for the announcement

48

Read this comment on Money Control.

Trading members of the exchange are hereby informed that effective from thursday, december 15, 2016 the equity shares of tci express limited shall be listed and admitted to dealings on the exchange in the list of t group of securities. further in terms of sebi circular no. cir/mrd/dp/02/2012 dated january 20, 2012; the scrip will be in trade-for-trade segment for 10 trading days.

49

Watch For TCI Express Valuations Though
At 370; Trades at 46X FY17e PE & 26X EV/EBITDA
5 Yr Revenue & PBT CAGR of 7.5 & 8% Resp

----Tweet from Mangalam Maloo

50

As someone who has worked in transport business and has had trucks.

  1. XPress business is quicker - say from Silvassa to Ambikapur (north chhattisgarh) in 4 days. Regular service would be something like 12 days. The king of regular part consignment service (materials packed in small wooden boxes) is ARC (Associated Road Carriers).

Express business means small cargo (except bulk household materials of individuals. If you have bulk cargo, you hire a whole truck which takes the material directly to destination (or tranships at some point(s) if direct lorry isn’t available).

Door-to-door delivery depends upon the customer. Gati does door-to-door by default, you will be charged for door delivery whether you want it or not, but others may or may not have that rule. You can request the local branch/franchisee of Gati to hold it at their godown from where you’ll pick it up but door-delivery charge would be there.

   2. Xpress and supply-chain after-all are freight service. Just that they are hi-speed.

      3. & 4. Do some work, annual reports have that information if its not already answered.
51
  1. Business moat is there for people with large networks, but how many clients require that many branches : I can’t think of one. What happens is, the client hires the smaller transporters for the routes with the most business : viz delivery to big metros and cities. And for the rest it hires these companies with huge networks where small players don’t have access.

But these small towns really don’t give that much business to e-coms. Most e-com business comes from places which already have industry/trading hub/political capital … i.e, places where small players already have branches.

  1. Yes scalability is an issue, whether the new entrant has capital or not, but again as mentioned in point 1, having a big network isn’t really that big an advantage.

  2. Agreed.

  3. An example of a franchisee of GATI where I used to sit.
    a. The office + godown was rented
    b. Crane (if hired) was rented
    c. The company hired the trucks that came to deliver material from hub.

The things that the franchisee owned included:
a. Table/chairs
b. Weighing machine
c. Computer & Peripherals
d. Phones
e. 2 Delivery trucks (equivalent to Tata Ace).

Most importantly It was a franchisee i.e, GATI didn’t have to do Capex to get a branch at that place. For most non-hub places, this is GATI’s model, quite replicable.

  1. Its a highly competitive business, the most near to ‘free market’ you’ll see in India, more freer than the roadside tea seller market. To top it all, anybody with some money invests in this business cause its easy to set up, with minimal regulations and taxes. So where is the money?
52

Hi,

TCI Express seems to be interesting company, growth of 20%, request someone initiate new thread on this

53

Plan to acquire a ship & additional trucks: Transport Corp

Read more at: http://www.moneycontrol.com/news/results-boardroom/plan-to-acquireshipadditional-trucks-transport-corp_8420421.html?utm_source=ref_article

1 Like
55

Few data points wrt to gst -

Currently, a trucker will typically need about eight days to cover the more than 3,000km from India’s northern state of Jammu and Kashmir to the southern state of Tamil Nadu.

“After [the] GST, a driver will be able to cover this distance in just four days,” junior finance minister Arjun Ram Meghwal said on Friday at a session of the India Integrated Transport & Logistics Summit 2017.

India, which has 29 states, loses $6.6 billion a year to transportation delays on its roads, according to a joint study by the Indian Institute of Management Calcutta and Transport Corporation of India. The cost in wasted fuel due to these delays is estimated to be an additional $14.7 billion.

1 Like
56

Transport Corporation of India
Inclusive growth; sustainability remains key…IDirect_TransportCorp_Q4FY17.pdf (306.6 KB)

57

TCI Express annual report :slight_smile:
http://www.tciexpress.in/pdf/TCI%20Express_Annual%20Report%20-%202016-17.pdf

1 Like
58

876625614PC_-Logistics_Sector_Initiating-_Aug_2016_20160808232319.pdf (2.8 MB)

Slightly dated but still relevant sectoral report by Phillip Capital. To me, author/s have done reasonable justice to the endeavor. Overall good read.

Thanks,
Tarun

1 Like
59

What will be the impact of this if it gets implemented? will it help Concor? http://www.thehindubusinessline.com/economy/logistics/container-train-operators-at-sea-over-jn-ports-proposed-sop/article9773630.ece

60

TCI Express Result

image.jpg869×813 254 KB

1 Like
61

TCI result

http://www.bseindia.com/xml-data/corpfiling/AttachLive/dd26bbf9-b2f2-42c6-a6a3-ddca83405ba3.pdf