Buy Container Corporation, target price Rs 442: Motilal Oswal

Motilal Oswal has given a buy rating to Container Corporation of India with a target price of Rs 442. The share price moved down by 0.17 per cent from its previous close of Rs 377.95. The stock’s last traded price is Rs 2743.90.

Container Corporation of India Ltd., incorporated in the year 1988, is a Large Cap company (having a market cap of Rs 22924.70 Crore) operating in Logistics sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 1509.30 Crore, up 26.39 % from last quarter Sales of Rs 1194.20 Crore and down -14.03 % from last year same quarter Sales of Rs 1755.61 Crore.

Investment Rationale
The brokerage maintains FY21/FY22 estimates and Buy rating on expected longer term volumes and margin benefits from the commissioning of the Dedicated Freight Corridor (DFC) project.

Promoter/FII Holdings
Promoters held 54.8 per cent stake in the company as of Sept 30, 2020, while FIIs held 24.5 per cent, DIIs 15.8 per cent and public and others 4.9 per cent.