The shares of Container Corporation of India surged 6.58% on Monday’s early trades. The shares saw a gap-up opening in the morning and are now quoting at ₹611.15 apiece.
On May 19, 2022, the company declared its results for Q4FY22. The company clocked a revenue of ₹ 2043 crore, up 5% YoY. Further, its PAT (profit after tax) increased from ₹ 16 crores to ₹ 260 crores in Q4FY21.
The management of the company has taken new initiatives like (3PL, distribution logistics, cement & food grain transport, a higher terminal utilisation and so on. These initiatives are expected to diversify Concor offerings to customers and thereby capture higher wallet share.
ICICI Securities has maintained a buy call on the shares of Container Corporation of India with a target price of ₹680 apiece. This translates to an upside of 11.25%.
“Higher diesel prices should help rail gain share medium term; more reasonable valuations as 1-year fwd consensus P/E has corrected from 39x in May-21 to 27.7x in May-22; and expanding domestic container TAM (food grains, cement from F23),” said Morgan Stanley as it upgraded the shares to equal weight.
It gave a target price of ₹628 apiece and said that rail will continue to gain medium term on higher diesel prices, more reasonable valuations, and expanding domestic container TAM (Total Addressable Market). This target indicates an upside of 2.58% as compared to the current market price.
Container Corporation of India is a large-cap company with a market capitalization of ₹ 34937 crores. This ‘Navratna’ company provides responsive, cost-effective, efficient and reliable logistics solutions to its customers. It is an undisputed market leader that has the largest network of ICDs/CFSs/ Strategic tie-ups in India. It provides inland transport to rail containers and has expanded to cover the management of Ports, air cargo, complexes, and cold chains.
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