Accumulate Container Corp; target Rs 1550: Kotak Sec

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26 Aug, 2025 12:21

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Kotak Securities' report on Container Corporation of India (CCI)

"Concor reported its Q3FY15 net profit at ~Rs 3 bn, higher than our expectation of Rs 2.7 bn. Company has reported decent volumes of 665,130 TEUs in the Exim (+12% YoY), but volumes remained weak at 115,313 TEUs in the domestic segment (-10% YoY). Realizations have come strong with hikes in tariffs taken by the company resulting in improvement in margins by 200 bps YoY at 25.3%. Sales were reported at Rs 14.5 bn (+7% QoQ and +17% YoY)."

"Concor is able to sustain its market share at ~75% in Exim. The company has reported strong volumes for FY14/9MFY15 in Exim and we estimate the company to deliver 9% volume CAGR over FY14 to FY16E in Exim (versus guidance of 10%) and volume CAGR of 8% in the domestic segment (versus guidance of 15%). We estimate operating margins to sustain at ~23/24% and ROE of ~15%. We value the company at 25 times FY16E EPS, a premium for its dominant market share, strong asset base, outperformance and strong balance sheet. Recommend ACCUMULATE with an increased TP of Rs 1550 (1460)", says Kotak Securities research report.

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