Today's Cancelled Trains
Buy Container Corporation; Target Rs.1530:
Maximus Securities
Maximus Securities is
bullish on Container Corporation of India (CONCOR) and has recommended buy
rating on the stock with a target price of Rs 1530 in its July 16, 2014
research report.
“Container Corporation of
India Ltd. (CONCOR) was incorporated in March 1988 under the Companies Act, and
commenced operation from November 1989 taking over the existing network of 7
Inland Container Depots (ICDs) from the Indian Railways. From its humble beginning,
it is now an undisputed market leader having the largest network of 62
ICDs/Container Freight Stations (CFSs) in India. In addition to providing
inland transport by rail for containers, it has also expanded to cover
management of Ports, air cargo complexes and establishing cold-chain. It has
and will continue to play the role of promoting containerization of India by
virtue of its modern rail wagon fleet, customer friendly commercial practices
and extensively used Information Technology.
CONCOR is committed to
providing responsive, cost effective, efficient and reliable logistics solution
to its customers. It strives to be the first choice for its customers. CONCOR
is a customer focused, performance driven, result oriented organization,
focused on providing value for money to its customers.
CONCOR’s core business is characterized
by three distinct activities, that of a carrier, a terminal operator, and a
warehouse operator. Majority of CONCOR terminals are rail-linked, with rail as
the main carrier for haulage. As rail is price-competitive over long distances,
the price advantage can be passed on to clients, thus allowing for flexible and
competitive pricing. Though rail is the mainstay of CONCOR’s transportation
plan, some CONCOR terminals are exclusively road-fed as well.
CONCOR’s terminals provide
a spectrum of facilities in terms of warehousing, container parking, repair
facilities, and even office complexes.
CONCOR also uses its
terminal network to plan Hub and Spoke movements that allow single customers to
move cargo to multiple locations, with CONCOR taking care of the distribution
and re distribution requirements.
Valuations: Considering the
improvement in volumes, stable margins, large cash balance, balance strength,
market leader status with increasing market share, tailwinds such as the
Dedicated Freight Corridor & GST, growth in global economy and formation of
a stable government at the Centre, we value CONCOR with a P/E of 22.3x FY16E
EPS to arrive at a target price of Rs 1530/share. Buy the stock,” says Maximus
Securities research report.
Source : RailNews.
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