Concor reported strong numbers with reported revenues, PAT above I-direct estimates. The company did not record any exceptional income during the quarter vs. Rs. 84 crore in Q4FY19. Operationally, Exim volumes de-grew 5% (realisation de-growth of 10% YoY) while domestic volumes grew ~2% (realisation remained flat). Exim revenues de-grew 14% to Rs. 1131 crore while domestic revenues remained flat at Rs. 438 crore. Standalone EBITDA margins grew 837 bps YoY to 30.2% while absolute EBITDA grew 24%. Due to the inclusion of SEIS income in the previous comparable quarter and an exceptional loss in the current quarter, reported PAT de-grew 16%.
Valuation & Outlook
Although volumes will get negatively impacted in FY21E due to Covid-19 related Exim de-growth, the situation is expected to reverse in FY22E as the economy normalises. Also, the setting up of DFC network is expected to further aid the volume growth of the company from FY22E onwards. With focus on providing value added services and restraint on taking any low margin business (especially short lead cargo), we expect realisations to boost the topline. The twin catalyst is expected to keep margins healthy in the medium to long term. We maintain BUY with a target price of Rs. 520.
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_ContainerCorp_Q4FY20.pdf
Shares of CONTAINER CORPORATION OF INDIA LTD. was last trading in BSE at Rs.433.65 as compared to the previous close of Rs. 426.2. The total number of shares traded during the day was 108730 in over 6266 trades.
The stock hit an intraday high of Rs. 438.75 and intraday low of 423.45. The net turnover during the day was Rs. 46865808.