ICICI Direct recommended hold rating on Container Corporation of India with a target price of Rs 620 in its research report dated October 31, 2019.
ICICI Direct's research report on Container Corporation of India
Concor reported a mixed set of numbers with revenues in line with our estimates while EBITDA was higher than our estimates. However, net profit was impacted by one-offs while the company reported a net loss of Rs 322 crore. Concor did not record any SEIS incentive during the quarter. The company reported an exceptional loss of Rs 861 crore in the quarter. The loss pertains to the ineligibility of the company for earlier recorded SEIS incentive towards customs transit of foreign liner sealed containers. Operationally, Exim volumes de-grew 3% (realisation growth of 2% YoY) while domestic volumes grew ~ 2% (realisation growth of 5%). Exim revenues de-grew 1% to Rs 1357 crore while domestic revenues grew 7% to Rs 381 crore.
We have a HOLD rating on the stock with a target price of Rs 620 (P/E multiple of ~25x to FY21E EPS of Rs 24.9).
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