Buy Container Corporation; target of Rs 670: Motilal Oswal

Motilal Oswal's research report on Container Corporation

Container Corporation (CCRI)’s 2QFY26 revenue grew 3% YoY to INR23.5b (in line). Total volumes grew 11% YoY to 1.4m TEUs, with EXIM/domestic volumes at 0.109m/0.34m TEUs (+9%/+17% YoY). Blended realization dipped ~7% YoY to INR16,321/TEU. EXIM/Domestic realization stood at INR14,426/ INR22,286 per TEU (-5%/-12% YoY). EBITDA margins came in at 24.2% (v/s our estimate of 21.6%). EBITDA declined ~1% YoY and was 12% above our estimate.

Outlook

We expect its revenue/ EBITDA to clock a CAGR of 13%/16% over FY25-FY28. We reiterate our BUY rating with a TP of INR670 (based on 15x EV/EBITDA on FY28E).