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Buy Container Corporation of India; target of Rs 600: Dolat Capital

Dolat Capital is bullish on Container Corporation of India has recommended buy rating on the stock with a target price of Rs 600 in its research report dated August 01, 2019.

August 02, 2019 / 15:12 IST
     
     
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    Dolat Capital's research report on Container Corporation of India

    The Q1FY20 was in-line, adjusted for unrecognized SEIS income. Margins improved 300bps YoY, despite a volume decline of 1% YoY, due to the price hikes taken in FY19 and beginning FY20. The company has maintained its 10-12% volume growth guidance, but cautioned that the growth depends on the economy. Balance sheet has improved and company is again net cash. DFC remains the most important long-term trigger that should aid margins.

    Outlook

    We retain our FY20/21 estimates, given the in-line PAT post adjusting SEIS income for Q1FY20 and maintain BUY with a TP of `600.

    For all recommendations report, click here

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    Broker Research
    first published: Aug 2, 2019 03:12 pm

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