Container Corporation of India Ltd. share price target

Container Corporation (CCRI) reported strong 2QFY22 earnings with EBITDA at INR4.3b beating our estimate by 6%, led by better-than-expected realization and operational efficiency. The Dedicated Freight Corridor (DFC) will benefit CCRI significantly through a) double stacking, b) higher load capacities, and c) reduced turnaround time, thus leading to improved volumes and profitability....

What should investors do? Concor and CTOs in general are seeing their transit times declining between TKD/Dadri to Gujarat ports. Further, normalisation of DFC and | 1000/TeU pan-India price hike from October 1 are expected to further...

Work on long term lease contract with Indian Railways is in advance stage; management maintains its revenues growth guidance of ~12% YoY in FY22. CCRI reported strong 1Q numbers on the back of robust volume growth and uptick in realizations, both in EXIM and domestic segments. Improvement in...

Clarity on LLF payment (and the likelihood of a 35-year lease agreement with the railways) removes a key overhang on the stock. We maintain our FY22E/FY23E EBITDA estimate. We maintain our Buy rating on expected volume and margin benefits from the DFC....

Concor has paid | 520 crore as LLF charges in FY21 on the basis of 6% of the calculated CMP of railway land parcels (it has surrendered 16 terminals to IR). The company further expects to pay | 450 crore as LLF charges for FY22E (lower than FY21), as it intends to surrender two more rail terminals and also rightsizing of existing terminals (including its flagship Tughlakabad terminal). The management is also working on an alternative path with Indian Railway to purchase the 24 terminals it operates on the IR land for 35 years (at 99% of the CMP), which is expected to range at ~| 6000-7000...

Monetary Policy Review: Rates on hold, focus on liquidity. CCRI: Earnings in line; LLF remains a key monitorable. MM: Healthy Q3, valuations expensive maintain SELL. HMCL: Optimism priced in maintain SELL. ALKEM: Q3 in line; strong free cash to support rerating

and was 11%/17%/32% above our estimate on higher realization (+8% YoY) at INR18,155/TEU. EXIM/domestic realization stood at INR16,140/INR28,197 per TEU, up 6%/14% YoY. Total volumes rose 6% YoY to 966,015 TEUs (in line), with EXIM/domestic volumes at 804,557/161,458 per TEUs (+5%/+12% YoY). EBITDA margin was lower at 21.2% v/s 24.3% in 3QFY20 due to higher LLF at INR1.2b and a one-time provision of INR0.5b towards post-retirement medical expenses of retired employees. Adjusted for that, EBITDA stood at...

Container Corp's (CCRI) Q3FY21 revenue was a beat but EBITDA met our estimates.

As per the annual land licensing fee (LLF) norms for Concor, from April 1, Indian Railways (on which 27 Concor terminals operate of its total ~64 terminals), Ministry of Railways has demanded | 1337 crore (annually) for 21 terminals (expect higher amount when accounted for 27 terminals), based on 6% of value of land. Concor, on the other hand, has estimated and accounted | 450 crore for FY21 as LLF and is actively contesting the excess demand. The management believes the situation would be resolved in favour of Concor. As per media sources, the Union Cabinet is likely to take...

Employee cost higher by Rs496mn with first time actuarial valuation for postretirement medical benefits (would be capped at 1% of PBT going forward). CCRI reported strong numbers in 3Q on the back of robust volume growth and sharp uptick in realizations, both in EXIM and domestic segments....