Add Container Corporation of India, target price Rs 419: Yes Securities

Yes Securities has given add rating to Container Corporation of India with a target price of Rs 419. The share price moved down by 1.64 per cent from its previous close of Rs 386.35. The stock’s last traded price is Rs 380.
Container Corporation of India Ltd., incorporated in the year 1988, is a Large Cap company (having a market cap of Rs 23308.56 Crore) operating in Logistics sector.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 1194.20 Crore, down 24.62 % from last quarter Sales of Rs 1584.31 Crore and down 27.83 % from last year same quarter Sales of Rs 1654.76 Crore. The Company reported net profit after tax of Rs 49.29 Crore in latest quarter.

Investment Rationale
While the brokerage largely maintains topline estimates, it expects margin to come under pressure with subdued volumes and increasing competition. The high uncertainty regarding the LLF outcome would be an overhang on the stock. Considering this, it has downgraded rating to ADD with a 12m TP of Rs 419 (22x FY22E PE multiple).

Promoter/FII Holdings
Promoters held 54.8 per cent stake in the company as of June 30, 2020, while FIIs and DIIs held 40.4 per cent and public and others 4.6 per cent.