Motilal Oswal Maintains Bullish Stance on Container Corporation, Targets Rs 600
Container Corporation of India (CCRI) Poised for Growth with Completion of Western Dedicated Freight Corridor
The Dedicated Freight Corridor Corporation of India Limited (DFCCIL) has successfully commissioned the Western Dedicated Freight Corridor (WDFC), a key connectivity to JNPT via Vaitarna, marking the completion of a ~2,843km DFC network. This development is expected to drive a significant structural shift in rail logistics, with JNPT's rail coefficient likely increasing substantially from the current levels of 16%. The improvement will be supported by double-stack container movement and faster evacuation, leading to a meaningful modal shift from road to rail.
The completion of the WDFC is expected to have a positive impact on Container Corporation of India (CCRI). Our research indicates that CCRI is poised for growth, with expected compound annual growth rates (CAGR) of 10% in revenue and 11% in earnings before interest, taxes, depreciation, and amortization (EBITDA) over the period of FY25 to FY28. Based on this analysis, we reiterate our BUY rating for CCRI with a revised target price of INR600. This revised target price is based on an enterprise value to EBITDA multiple of 14x on estimated earnings for FY28.
| Growth Metric | FY25 | FY26 | FY27 | FY28 |
|---|---|---|---|---|
| Revenue CAGR | 10% | 11% | 12% | 12% |
| EBITDA CAGR | 11% | 12% | 13% | 13% |
Read also: HSBC Maintains Bullish Stance on Trent Stock Despite 33% Post-Bonus Share Price Correction
Investor Takeaway
Investors should consider buying Container Corporation with a target price of Rs 600.
More in Market
HSBC Maintains Bullish Stance on Trent Stock Despite 33% Post-Bonus Share Price Correction
Rupee Starts Trading at 95.70 Against US Dollar
Alphabet Sees Significant Increase in Equity Raise to $84.75 Billion to Fund AI Development
