Hold Container Corporation; target of Rs 1400: JM Financial

JM Financial recommended hold rating on Container Corporation with a target price of Rs 1400 in its research report dated April 02, 2018.

Broker Research

April 09, 2018 / 17:19 IST

26 Aug, 2025 12:21

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JM Financial's research report on Container Corporation

Container Corporation released provisional volume/revenue estimates for FY18 (subject to audit and finalisation). It indicated total volume grew 13% YoY to 3.5mn TEUs while total revenue grew 9% to INR 64.4bn in FY18. We estimate a) volumes grew 15% YoY 4QFY18 (2% below JMFe), and b) continued recognition of SEIS income in 4QFY18 (as it recognised in 3QFY18 for 9MFY18). Given the lumpy nature of SEIS income recognition (4QFY17 for FY17; 3QFY18 for 9MFY18), we believe revenue/realisation figures may not be exactly comparable. Based on our analysis of port/rail volume, we believe the growth momentum for Container Train Operators like Concor continues to remain healthy.

Outlook
We maintain our HOLD rating (Mar’19TP of INR1400) and await better price point for entry/accumulation. At INR1237, the stock trades at 30.3xFY19EPS (25.7xFY20EPS).

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