Buy Container Corporation of India, target price Rs 737: Centrum Broking

Centrum Broking has buy call on Container Corporation of India with a target price of Rs 737. The current market price of Container Corporation of India is Rs 604.05. Time period given by analyst is year when Container Corporation of India Ltd. price can reach defined target.

Container Corporation of India Ltd., incorporated in the year 1988, is a Large Cap company (having a market cap of Rs 37840.23 Crore) operating in Logistics sector.

Container Corporation of India Ltd. key Products/Revenue Segments include Freight, Other Services, Other Operating Revenue and Export Incentives for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 1994.18 Crore, up 4.94 % from last quarter Total Income of Rs 1900.28 Crore and up 8.26 % from last year same quarter Total Income of Rs 1842.11 Crore. Company reported net profit after tax of Rs 276.35 Crore in latest quarter.

Investment Rationale
Concor’s robust cash flows continue to support its elevated capex spends, leading to a debt-free balance sheet. This puts it in a position of strength to benefit from an expected growth resurgence and to take advantage of emerging opportunities in the sector. A structural and positive change in Indian Railways’ approach towards freight and DFC-led growth resurgence support the stock’s premium valuations. It values Concor at 18x average (FY23-24E) EBITDA and arrive at TP of Rs737.

Promoter/FII Holdings
Promoters held 54.8 per cent stake in the company as of 31-Dec-2021, while FIIs owned 24.85 per cent, DIIs 15.59 per cent.