Hold Container Corporation of India, target price Rs 396: Emkay Global

Emkay Global has given a hold rating to Container Corporation of India with a target price of Rs 396. The share price moved down by 2.26 per cent from its previous close of Rs 370.05. The stock’s last traded price is Rs 361.70.

Container Corporation of India Ltd., incorporated in the year 1988, is a Large Cap company (having a market cap of Rs 22056.46 Crore) operating in Logistics sector.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 1194.20 Crore, down 24.62 % from last quarter Sales of Rs 1584.31 Crore and down 27.83 % from last year same quarter Sales of Rs 1654.76 Crore. The Company reported net profit after tax of Rs 49.29 Crore in latest quarter.

Investment Rationale
The brokerage said that rail cargo volumes have picked up strongly over the quarter partly due to market share gain from roads. This should aid faster volume recovery for Concor, though margins remain a concern due to the high land license fee.

Promoter/FII Holdings
Promoters held 54.8 per cent stake in the company as of June 30, 2020, while FIIs and DIIs held 40.4 per cent and public and others 4.6 per cent.