MOSL : CONTAINER CORPORATION: The domestic segment continues to drive volumes
CONTAINER CORPORATION: The domestic segment continues to drive volumes
(CCRI IN, Mkt Cap USD5.3b, CMP INR685, TP INR790, 15% Upside, Buy)
- CCRI posted an in line operational performance, with a volume/realization growth of 2%/7% YoY. Revenue grew 9% YoY to INR19.8b, 4% lower than our estimate. EXIM/domestic volumes stood at 0.78m/0.22m TEUs (-3.7%/+29.2% YoY).
- EBITDA/PAT grew 9%/14% YoY to INR4.7b/INR2.9b (in line). CCRI continues to incur capex towards infrastructure, rolling stock, containers, and equipment. The management's focus is on improving its distribution logistics infrastructure.
- The company incurred INR0.96b towards land license fee (LLF) in 1QFY23. The same for FY23 is expected to be lower than the management's earlier guidance as per its discussions with the Indian Railways. We raise our FY23/FY24 EPS estimate by 4% each and maintain our Buy rating on the stock with a TP of INR790, implying a potential upside of 15%.
In line operational performance in 1QFY23
- Total volumes grew 2.1% YoY to 1.01m TEUs, with EXIM/domestic volumes at 0.78m/0.22m TEUs (-3.7%/+29.2% YoY).
- Blended realization improved 7% YoY to INR19,528/TEU. EXIM/domestic realization stood at INR16,572/INR29,697 per TEU, up 3%/5% YoY.
- EBITDA margin stood at 23.9% (down 10bp YoY). The same rose 370bp QoQ due to lower other expenses.
- The board has declared an interim dividend of INR2 per equity share.
Container Corp. of India is engaged in the transportation of containers by rail, management of ports, air cargo complexes and establishing cold-chain. Though rail is the main stay of Co.'s transportation plan, road services are also provided to cater to the need of door-to-door services, whether in the International or Domestic business. Co. is organized on All-India basis into two major operating divisions which are EXIM and Domestic divisions.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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