ICICI Securities's research report on Container Corporation of India
CONCOR’s Q1FY26 EBITDA of INR 4.26bn missed consensus estimates by ~9%. Key points: 1) Overall volume grew 11.3% YoY (EXIM- 12% and domestic- 9.1%); 2) EBITDA was impacted due to i) volume discount reconciliation and ii) increase in employee cost (one time performance bonus) of INR 180mn; 3) double stack rakes grew 11.2% YoY to 1,505 rakes; 4) it incurred capex of INR 2.02bn in Q1FY26; 5) LLF for Q1 was INR 1.1bn and 6) Board has declared an interim dividend of INR 1.6/share. Going ahead, management has maintained volume growth guidance of 13% (EXIM- 10% and dom 20%). We maintain BUY with a revised target price of INR 682 (earlier INR 704 adjusted 1:4 bonus issue), based on an unchanged multiple of 32x on FY27E EPS.
Outlook
We have lowered our FY26/27E EPS by 7.1%/2.4% and our revised TP works out to INR 682 (earlier704 adjusted 1:4 bonus issue), based on 32x FY27E EPS.
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