ThinkStock PhotosCentrum Broking has buy call on Container Corporation of India with a target price of Rs 783. The current market price of is Rs 698.95. Time period given by analyst is one year when . price can reach defined target.
Container Corporation of India Ltd., incorporated in the year 1988, is a Large Cap company (having a market cap of Rs 42431.26 Crore) operating in Logistics sector.
Container Corporation of India Ltd. key Products/Revenue Segments include Freight, Other Services, Other Operating Revenue and Export Incentives for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 2062.50 Crore, down -3.10 % from last quarter Total Income of Rs 2128.56 Crore and up 9.90 % from last year same quarter Total Income of Rs 1876.69 Crore. Company reported net profit after tax of Rs 294.03 Crore in latest quarter.
Investment Rationale
Weak EXIM growth YTD FY23 remains a key negative for . However, with Covid led disruptions normalizing and with reduction in Ocean freight rates the outlook for EXIM appears to be improving. While we moderate Concor’s FY23 EXIM volume growth to 4.5% from previous estimate of 10%, FY23E/FY24E earnings are upgraded by 3.4%/5.1% due to cut in guidance for LLF expenses. As per media articles, the government is in the process of finalizing a long term LLF policy by way of which Concor’s LLF rate may substantially reduce to 2% of land value from 6% currently. This can drive upside of 13% in FY24E earnings. Maintain Buy with TP of Rs783 (18x FY24E EBITDA).
Promoter/FII Holdings
Promoters held 54.8 per cent stake in the company as of 30-Jun-2022, while FIIs owned 23.65 per cent, DIIs 16.81 per cent.
Container Corporation of India Ltd., incorporated in the year 1988, is a Large Cap company (having a market cap of Rs 42431.26 Crore) operating in Logistics sector.
Container Corporation of India Ltd. key Products/Revenue Segments include Freight, Other Services, Other Operating Revenue and Export Incentives for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 2062.50 Crore, down -3.10 % from last quarter Total Income of Rs 2128.56 Crore and up 9.90 % from last year same quarter Total Income of Rs 1876.69 Crore. Company reported net profit after tax of Rs 294.03 Crore in latest quarter.
Investment Rationale
Weak EXIM growth YTD FY23 remains a key negative for . However, with Covid led disruptions normalizing and with reduction in Ocean freight rates the outlook for EXIM appears to be improving. While we moderate Concor’s FY23 EXIM volume growth to 4.5% from previous estimate of 10%, FY23E/FY24E earnings are upgraded by 3.4%/5.1% due to cut in guidance for LLF expenses. As per media articles, the government is in the process of finalizing a long term LLF policy by way of which Concor’s LLF rate may substantially reduce to 2% of land value from 6% currently. This can drive upside of 13% in FY24E earnings. Maintain Buy with TP of Rs783 (18x FY24E EBITDA).
Promoter/FII Holdings
Promoters held 54.8 per cent stake in the company as of 30-Jun-2022, while FIIs owned 23.65 per cent, DIIs 16.81 per cent.
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