Container Corp - EXIM Volume Picks Up; Margins To Remain Stable: Motilal Oswal

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Motilal Oswal Report

Container Corporation of India Ltd. targets to increase the share of rail in the overall modal mix. Increasing double-stacked trains with direct connections to ports will help the company gain a higher share of cargo volumes. Further, the transportation of bulk cement and a pickup in demand for packed cement will drive volumes for the company in FY25 and beyond.

With the commissioning of dedicated freight corridors and a continuous ramp-up in the number of double-stacked trains, we expect a 15% compound annual growth rate in blended volumes during FY24- 26.

We expect Ebitda margin of 24-25% over FY24-26. The stock trades at 18.5 times FY26E EV/Ebitda. Reiterate Buy with a target price of Rs 1,260 (based on 22 times EV/Ebitda on FY26E).

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Motilal Oswal Container Corp Company Update.pdf

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