Motilal Oswal 's research report on Container Corporation
Container Corporation’s (CCRI) 4QFY20 results highlight loss of market share from 73% last year to ~67% as the company exited short-haul freight market, which had low profitability. EBITDA margin, thus, improved by 4pp YoY in FY20 to 25.9%. We have cut our FY21/FY22 estimates on weaker volume outlook and sharp increase in land license fee by the Railways. We maintain Buy rating on the expected longer-term volume and margin benefits from the commissioning of the Dedicated Freight Corridor (DFC) project by end-FY21.
Outlook
The stock trades at 12x FY22E EV/EBITDA. We derive a DCF-based target price of INR510/share.
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