Is TCL a utility or an industrial ?

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Question asked 04/06/2022

Is TCL a utility or an industrial ?

Hi James and Team, Why is TCL categorised in the industrial sector when by definition one would think it would be a better fit for the utility sector (maintaining infrastructure for a public service)? This morning MM explored 3 utilities for potential defensive plays. If TCL were included in the list of APA, ORG and AGL, where would it rank in preference. I appreciate that MM already has exposure to TCL. Thanks and regards JanP

Answer

Hi Jan,

Bloomberg has TCL under the Transportation banner along with Aurizon (AZJ) and Qantas (QAN). I think clearly it is an industrial stock in the sub sector of transportation, but it’s not an important argument in any case

Most importantly I would bracket TCL as a defensive stock along with the 3 Utilities names mentioned earlier. In order of preference I would place it on top of this pile alongside APA, hence why we own both in our Income Portfolio, having recently sold out of AGL.

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Transurban Group (TCL)

LAST UPDATED 03/06/2022 16:07

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