Motilal Oswal is bullish on Container Corporation recommended buy rating on the stock with a target price of Rs 510 in its research report dated June 27, 2020.
Motilal Oswal 's research report on Container Corporation
Container Corporation’s (CCRI) 4QFY20 results highlight loss of market share from 73% last year to ~67% as the company exited short-haul freight market, which had low profitability. EBITDA margin, thus, improved by 4pp YoY in FY20 to 25.9%. We have cut our FY21/FY22 estimates on weaker volume outlook and sharp increase in land license fee by the Railways. We maintain Buy rating on the expected longer-term volume and margin benefits from the commissioning of the Dedicated Freight Corridor (DFC) project by end-FY21.
Outlook
The stock trades at 12x FY22E EV/EBITDA. We derive a DCF-based target price of INR510/share.
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