Container Corporation of India Q1 Results Review- Near Term Concerns New Initiatives Aplenty: ICICI Securities

ICICI Securities Report

Container Corporation of India Ltd. Q1 FY25 Ebitda missed our and consensus estimates. Key points:

1. Ebitda/twenty-foot equivalent unit (org. basis) declined to Rs 7,118 (Rs 7,267 in Q4 FY24).

2. Overall volume grew 6% YoY (EXIM: 3.3%; domestic: 15%).

3. Land Licence Fee provision of Rs 1.06 billion was booked in Q1 FY25.

4. Incurred capex of Rs 1.6 billion in Q1 (FY25 guidance: Rs 6.1 billion).

5. Container Corporation of India is planning five new terminals, and

6. Board has declared interim dividend of Rs 2/share.

While the management has maintained its blended volume growth guidance of ~18-20% for FY25, considering the current operating environment in EXIM, we have reduced our volume growth estimates and earning per share for FY25/26E by 19%/11%, respectively.

Maintain 'Add' with a revised target price of Rs 1,030/share (earlier Rs 1,160/share) based on an unchanged 35 times FY26E earning per share.

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