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Last Updated : Jun 29, 2020 06:58 AM IST | Source: Moneycontrol.com

Buy Container Corporation; target of Rs 510: Motilal Oswal

Motilal Oswal is bullish on Container Corporation recommended buy rating on the stock with a target price of Rs 510 in its research report dated June 27, 2020.

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Motilal Oswal 's research report on Container Corporation


Container Corporation’s (CCRI) 4QFY20 results highlight loss of market share from 73% last year to ~67% as the company exited short-haul freight market, which had low profitability. EBITDA margin, thus, improved by 4pp YoY in FY20 to 25.9%. We have cut our FY21/FY22 estimates on weaker volume outlook and sharp increase in land license fee by the Railways. We maintain Buy rating on the expected longer-term volume and margin benefits from the commissioning of the Dedicated Freight Corridor (DFC) project by end-FY21.



Outlook


The stock trades at 12x FY22E EV/EBITDA. We derive a DCF-based target price of INR510/share.




For all recommendations report, click here

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First Published on Jun 29, 2020 06:58 am
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