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.
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