Dolat Capital is bullish on CONCOR has recommended buy rating on the stock with a target price of Rs 822 in its research report dated July 27, 2018.
Dolat Capital's research report on CONCOR
Q1FY19 reported numbers in line with our estimates with increase in overall EXIM handling volumes for Q1FY18 at 794,405 TEUs, a growth of 11.4% YoY as there was pick in exports while domestic volume witnessed single digit growth (141,251 TEUs;8.7% YoY) due to infrastructure bottlenecks like rail congestion. The management expects the domestic volumes to improve for the rest of FY19 with the increase in input cost to be passed on gradually The SEIS income for Q1FY19 was at ` 700mn.
We Maintain BUY valuing the company using DCF methodology with a TP of ` 822 (WACC: 10%; TGR: 4%).We expect the handling volumes to grow at 10-12% for FY19 with 11 new terminals, coastal shipping initiative and the planned transit-warehousing income from distribution logistics to increase market share for domestic container traffic in the near term.
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