Buy CONTAINER CORPORATION:: Kotak Sec, PDF report link

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CONTAINER CORPORATION OF INDIA (CONCOR)
PRICE: RS.1285 RECOMMENDATION: BUY
TARGET PRICE: RS.1470 FY16E P/E: 19.2X
Realizations continue to remain stable for Concor for both Exim and
domestic segments. Concor is also able to sustain its market share at ~75%
in Exim. The company has reported strong volumes for FY14/Q1FY15 and we
estimate the company to deliver 9% volume CAGR over FY14 to FY16E in
Exim (versus guidance of 10%) and volume CAGR of 8% in the domestic
segment (versus guidance of 15%). We estimate operating margins to
sustain at ~23% and ROE of ~15%. The company recently got the status of
Navratna PSU which we believe also adds value to the company.
We value the company at 22 times FY16E EPS, a premium for its dominant
market share, strong asset base, outperformance and strong balance sheet.
Continue to Recommend BUY with an unchanged TP of Rs 1465.


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LINK
http://www.kotaksecurities.com/pdf/pdfs/FUNDCONCOR19092014093353.pdf