ICICI Direct is bullish on Container Corporation of India has recommended buy rating on the stock with a target price of Rs 625 in its research report dated May 03, 2019.
ICICI Direct's research report on Container Corporation of India
Container Corporation of India (Concor) reported a strong set of Q4FY19 numbers (ex-SEIS income). SEIS incentive during the quarter came in at Rs 84 crore vs. Rs 82 crore in Q4FY18. Although overall volumes remain subdued in both segment (Exim & domestic), higher realisation led to 12% YoY growth in revenues. Adjusted EBITDA margins remained largely flat at 21.9%. Subsequently, adjusted EBITDA grew 11% to Rs 383 crore. PAT grew 20% to Rs 352 crore, as a strong operational performance and higher other income was negated, to an extent, by a higher tax rate (32.9% vs. 26.1% in Q4FY19).
We maintain BUY with a target price of Rs 625, assigning a P/E multiple of ~22x to FY21E EPS of ~Rs 29.
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