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Buy Container Corporation; target of Rs 750: Motilal Oswal

Motilal Oswal is bullish on Container Corporation has recommended buy rating on the stock with a target price of Rs 750 in its research report dated June 27, 2022.

June 28, 2022 / 12:01 IST
     
     
    26 Aug, 2025 12:21
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    Motilal Oswal's research report on Container Corporation

    CCRI witnessed a robust performance over FY22, with 12% volume growth and robust margin improvement. Growth was driven by Domestic volumes, which grew 32% in FY22 as against an 8% growth in EXIM volumes. Going forward, CCRI is very well placed to capitalize on the DFC opportunity. While it is already benefiting from the partial commissioning of the Rewari-to-Palanpur section of WDFC (with a faster turnaround time and improved efficiency), additional benefits are expected to flow through once JNPT and Dadri are connected to the DFC. It aims to handle ~5m TEUs in FY23E. The company is looking to enter into a long-term lease arrangement for its terminals owned by the Indian Railways and expects a development on that front soon. With decent volume growth and margin, we expect CCRI to clock a revenue/EBITDA/PAT CAGR of ~19%/20%/21% over FY22-24.

    Outlook

    The stock trades at 13x FY24E EV/EBITDA. We maintain our Buy rating on the stock with a DCF-based TP of INR750, implying a potential upside of 20%.

    More Info

    At 11:55 hrs Container Corporation of India was quoting at Rs 617.40, down Rs 6.35, or 1.02 percent.

    It has touched an intraday high of Rs 627.25 and an intraday low of Rs 616.60.

    It was trading with volumes of 17,760 shares, compared to its thirty day average of shares, a decrease of percent.

    In the previous trading session, the share closed up 0.24 percent or Rs 1.50 at Rs 623.75.

    The share touched its 52-week high Rs 754.10 and 52-week low Rs 554.10 on 13 September, 2021 and 20 May, 2022, respectively.

    Currently, it is trading 18.13 percent below its 52-week high and 11.42 percent above its 52-week low.

    Market capitalisation stands at Rs 37,617.83 crore.

    For all recommendations report, click here

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    Broker Research
    first published: Jun 28, 2022 11:59 am

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