ICICI Direct has given Buy recommendation for Container Corporation of India with a target price of Rs. 560 in its research report issued on Feb 05, 2021
ICICI Direct’s research report on Container Corporation of India
Q3 ended on a strong note, with 6% volume growth and 8-9% jump in realisation (revenues grew 15% YoY). The realisation growth was mainly due to a one-off 15 days from Indian Railways for free movement of empties, along-with higher lead distance and cargo movement. While domestic revenues grew 28% YoY to Rs 455 crore (volume growth of 12%), Exim revenue grew 11% YoY to Rs 1299 crore (volume growth of 5%). Standalone EBITDA margins contracted 313 bps YoY to 21.2% but adjusting for higher expected liability of employees (actuarial valuation), margins came at 24.1%. Subsequently, absolute unadjusted EBITDA remained flat at Rs 372 crore and PAT grew 36% YoY to Rs 238 crore.
Outlook
We maintain BUY with TP of Rs 560 (earlier Rs 450).
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