Container Corporation of India Ltd. share price target

In line Q4; Volumes key for FY20; Maintain Buy The Q4 results were in line, despite tepid volume, aided by two price hikes in FY19. The company has guided for a 10-12% volume growth and has taken actions to achieve that target: a 5% price hike in April 2019, followed by a price freeze for FY20, and locking its costs by paying in advance to the railways. The DFC remains the most important long-term trigger, as apart from boosting volumes, it will aid margins. We retain our FY20 volume guidance, despite recent softness, but trim our FY20 earnings by 15% to...

Revenues (excluding SIES income) grew 12% YoY to INR17.5b, in line with our estimate led by volume growth of 3% YoY and realization increase of 9% YoY. EBIT/TEU increased 21% QoQ as empty running charges declined significantly on a sequential basis due to Indian 1 May 2019 Railways announcing 25% discount on empty containers (effective Jan19). Thus, EBITDA stood at INR3.83b (+10% YoY; +15% QoQ) v/s our estimate of INR4.03b. Tax rate was higher at 27% as against 17.4% in 4QFY18. PAT came in at INR3.52b (+15% YoY; +28% QoQ) v/s estimate of INR 3.23b. Volumes for the company increased 8.5% YoY to 3.8m TEUs in FY19. Sales increased 11% YoY to INR65.

Container Corp of India's (CCRI) Q4FY19 results beat expectations. Strong realisation growth (9% YoY) negated the impact of sedate volumes (2.9% YoY), driving sturdy revenue growth (ex-SEIS) of 12.4% YoY to Rs 17.5bn (est. Rs 16.8bn). EBITDA margin expanded 153bps YoY to 21.9% (est. 21.3%); PAT grew at a strong 21% YoY. We raise FY20/FY21 EBITDA estimates by ~7% each but the impact on earnings is negated by lower other income and...

MPC delivered two consecutive rate cuts of 25bps each with a 4-2 vote. Neutral stance maintained. The continuous undershoot of CPI inflation and downward revision to growth forecasts spurred the MPC members to cut rates. With weak global and domestic growth momentum and change in monetary policy stance of most global central banks, RBI has room for another rate cut as real rates remain high. The key risk to the above view is sharp jump in oil prices, poor monsoon or adverse election result....

Exim volumes underperform: Container Corporation of India (CCRI) posted 2.5% YoY growth in EXIM volumes in Q4FY19, below our estimate of 9.6% YoY. This represents the second consecutive quarter of muted growth, after a subdued Q3FY19 (+6.3% YoY). We believe this underperformance stems from tepid EXIM cargo movement, soft growth in Indian Railways' container traffic (+6.7% YoY during Jan-Feb'19) and a high base of Q4FY18 (EXIM volume...

EBITDA margins increased 336 bps YoY to 21.2%, mainly due to lower terminal & other expenses. Hence, EBITDA grew 29% to | 334 crore However, PAT de-grew 5% to | 275 crore, as strong operational performance was negated by lower SEIS incentive (exceptional income) during the quarter (| 85 crore vs. | 186 crore in Q3FY18) 9MFY19 volumes continue on strong trajectory Volumes continue to remain strong in both Exim (10%) and domestic segment (12%), during 9MFY19. Although in Q3FY19, the Exim segment...

ICICI Securities Ltd | Retail Equity Research Container Corporation of India on December 10, 2018 made an announcement to consider issuing bonus shares, subject to approval of Board of Directors, shareholders and regulatory provisions. The Board recommended the issue of bonus shares in proportion of one bonus share (face value of | 5 each) for every four equity shares held. The record date for the same is February 5, 2019 while ex-date for the same is today i.e. February 4, 2019. Consequently, the Container Corporation...

Container Corporation of India Ltd. (CONCOR),is a Navratna Public Sector Undertaking under the Indian Ministry of Railways.

DFC continues to be the most important long-term trigger as apart from boosting volumes, it will aid margins. Distribution logistics will help reduce rail dependence and counter falling lead distances. Management is...

Container Corporation of India Ltd. (CONCOR),is a Navratna Public Sector Undertaking under the Indian Ministry of Railways.