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Last Updated : Jun 27, 2020 12:06 PM IST | Source: Moneycontrol.com

Accumulate Container Corporation of India; target of Rs 468: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Container Corporation of India with a target price of Rs 468 in its research report dated June 27, 2020.

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Prabhudas Lilladher's research report on Container Corporation of India


CCRI reported stellar EBITDA margins during 4Q despite de-growth in volumes primarily due to lower employee cost and reversal of provisions (Rs300mn). On EXIM front, CCRI reported 5% YoY volume decline in 4Q amidst Covid-19 pandemic impacting global as well as domestic economic activities. However, domestic segment witnessed 2.1% YoY growth led by various strategic initiatives. Given current stressed economic scenario and muted global economic activity, management has guided for 20% decline in handling volumes with EBITDA margins in 24-25% range. We believe CCRI’s unmatched presence across the country as compared to its peers coupled with positive long-term industry prospects would support its prolonged growth and help maintain its market leadership. We remain positive on the structural growth story considering 1) continuous market share gains in the domestic segment 2) strong EXIM volumes, 3) new strategic initiatives and 4) expected pick-up in economic activity. At CMP, the stock trades at a P/E of 38.7x/23.2x FY21E/FY22E earnings and trades at EV/EBITDA of 20.1x/13.9x FY21E/FY22E earnings.



Outlook


We have an ACCUMULATE rating on the stock with a TP of Rs468 (earlier TP of Rs509).




For all recommendations report, click here

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First Published on Jun 27, 2020 12:06 pm
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