Buy Container Corporation of India; target of Rs 624: Dolat Capital

Dolat Capital's research report on Container Corporation of India

Q3FY19 reported numbers below our estimates. The total EXIM handling volumes were785,873 TEUs, a growth of 6.3% YoY, as export volumes slowed in Nov'18, but picked up in Dec'18. The domestic volume witnessed a growth of 9.6% YoY to 140,233 TEUs. The management maintains its overall volume growth guidance of 12% YoY (4mn TEUs for FY19). The company expects domestic volumes growth of 11-13% YoY, aided by the start of coastal shipping business vertical in Jan'19.

Outlook

We maintain Buy valuing the company using DCF methodology with a TP of ` 624 (WACC: 9.1%; TGR: 4%).We expect the handling volumes to grow at 12% for FY19.

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Read More First Published on Feb 15, 2019 03:12 pm