Motilal Oswal's research report on Container Corporation of India
During FY22, CONCOR handled 47.7 MT of containerized cargo by rail v/s 42 MT in FY21 (reporting 13.5% YoY growth). In terms of TEU's, CONCOR achieved throughput of 4.1m TEUs in FY22 v/s 3.6m in FY21 (posting 11.8% growth). While EXIM volumes grew 8% YoY, domestic volumes spiked 32% YoY in FY22. Over the years, the company has developed its infrastructure, and it now operates 61 terminals across India of which six are pure EXIM terminals, 36 are combined container terminals and 17 are pure domestic terminals. CONCOR has also entered into two strategic tie-ups at various locations. The company is increasingly focusing on profitability and continues to operate more on long-lead profitable routes where it faces lower competition. CONCOR is also enhancing its value-added services and looking to generate higher margins from terminal handling and logistics solutions.
Outlook
We maintain our BUY rating on the stock with a DCF-based TP of INR870, implying an FY24E EV/EBITDA of 18x.
More Info
At 10:43 hrs Container Corporation of India was quoting at Rs 760.35, up Rs 7.60, or 1.01 percent.
It has touched an intraday high of Rs 770.60 and an intraday low of Rs 753.00.
It was trading with volumes of 86,257 shares, compared to its thirty day average of 85,376 shares, an increase of 1.03 percent.
In the previous trading session, the share closed up 2.92 percent or Rs 21.35 at Rs 752.75.
The share touched its 52-week high Rs 771.40 and 52-week low Rs 554.10 on 09 September, 2022 and 20 May, 2022, respectively.
Currently, it is trading 1.43 percent below its 52-week high and 37.22 percent above its 52-week low.
Market capitalisation stands at Rs 46,327.70 crore.
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