Accumulate Container Corporation of India; target of Rs 440: Dolat Capital

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26 Aug, 2025 12:21

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Dolat Capital's research report on Container Corporation of India

Q1FY21 report lower than estimated Sales, EBIDTA, and PAT during the quarter. Revenue at Rs ~11.9Bn, down -27% YoY /-24% QoQ led -21%/-8% volume/realisation decline. Margins at 13.4%, a multi-year low. Expects improvement in H2FY21. Q2 will be better than Q1FY21. Ministry of Railways has demanded for Rs 7.77Bn as LLF for FY21 for the Okhla and Tughlakabad Terminals of CONCOR at Delhi. However, company believes that demand is not as per the Railway's extant policy. Rs 1.2Bn has been provided for the quarter.

Outlook

Factoring the weakness in volume growth, and building in railway demand towards LLF into our estimates, we lower our estimates EBITDA/PAT estimates by -40%/-52% for FY21E and -31%/-38% for FY22E which lowers our DCF based target price to Rs 440 and we move the stock to an Accumulate Rating, mainly for the potential opportunity that is expected arise from DFC.

For all recommendations report, click here

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