INSUBCONTINENT EXCLUSIVE:
Nomura, India has a neutral call on Container Corporation of India Ltd
with a target price of Rs 711
The current market price of Container Corporation of India Ltd
is Rs 619.95 Time period given by the brokerage is a year when Container Corporation of India Ltd
price can reach defined target
Container Corporation of India Ltd., incorporated in 1988, is a largecap company with a market cap of Rs 29811.55 crore.
Investment
rationale by NomuraFollowing CCRI’s 1:1 stock split, we adjust our target price by the same ratio
The stock split is effective from 26 June 2018
Our methodology remains unchanged and our target price of INR711 is based on 16x FY20F EV/EBITDA, implying ~14% upside
Key upside risks are improving rail market share and reversal of GST tax differential, while further loss of share to roadways and delay in
the DFC are key downside risks
EPS estimates adjusted by similar proportion for stock split
To adjust for the 1:1 stock split, our per share metrics are one-half of their previous values
There are no changes to our revenue/margin/net profit estimate.
