Buy Container Corporation of India; target of Rs 682: ICICI Securities

ICICI Securities's research report on Container Corporation of India

CONCOR’s Q2FY26 EBITDA of INR 5.7bn rose 33.4% sequentially and was ahead of consensus estimates. Key points: 1) Overall volume rose 10.5% YoY (EXIM - 8.7% and domestic - 16.6%); 2) rail freight margin improved to 27.8% (26.2% in H1FY25). 3) Market share improved for JNPT and Pipavav ports but fell 261bps for Mundra port. 4) Incurred capex of INR 4.2bn in H1FY26 vs. guidance of INR 8.6bn for FY26; capex is likely to be higher than guidance. 5) LLF for H1 was INR 2.2bn; it is likely to be INR 4-4.2bn for FY26. 6) Board has approved second interim dividend of INR 2.6/share, taking the total dividend payout to INR 4.2/share for the year.

Outlook

Management maintains blended volume growth guidance of 13% (EXIM- 10% and domestic- 20%) for FY26. We maintain BUY with TP of INR 682, based on an unchanged multiple of 32x on FY27E EPS.