Sell Container Corporation of India, target price Rs 575: ICICI Securities

ICICI Securities has sell call on Container Corporation of India with a target price of Rs 575. The current market price of Container Corporation of India is Rs 660.2.


Container Corporation of India, incorporated in the year 1988, is a Large Cap company (having a market cap of Rs 40249.98 Crore) operating in Logistics sector.


Container Corporation of India key Products/Revenue Segments include Freight, Other Services, Other Operating Revenue for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 2110.98 Crore, up 3.94 % from last quarter Total Income of Rs 2030.94 Crore and up 5.86 % from last year same quarter Total Income of Rs 1994.18 Crore. Company has reported net profit after tax of Rs 288.30 Crore in latest quarter.

The company’s top management includes Mr.V Kalyana Rama, Mr.Sanjay Swarup, Mr.Manoj Kumar Dubey, Mrs.Chandra Rawat, Mr.Pradip K Agrawal, Mr.Chesong Bikramsing Terang, Mr.Kedarashish Bapat, Mr.Satendra Kumar. Company has S N Nanda & Co. as its auditors. As on 31-12-2022, the company has a total of 61 Crore shares outstanding.

Investment RationaleGoing ahead, the brokerage sees the proportion of domestic revenues increasing further from the current 36%, which is likely to keep margins constrained. Besides, the company’s attempt to recoup market share might impact margins further. Taking cognisance of lower margins and elevated cost structure, ICICI Securities prunes its FY23E/FY24E EPS by 4%/7% respectively.