Motilal Oswal Financial Services (MOSL) has retained its ‘Buy’ rating on Container Corporation of India (CONCOR) but cut its target price to ₹670 from ₹760, citing weaker-than-expected earnings in the June quarter.
MOSL on CONCOR: Weak quarter leads to downward revision in estimates
The brokerage noted that CONCOR’s Q1 earnings missed estimates due to lower realizations in both EXIM and domestic segments, as well as container delivery delays.
As a result, MOSL has reduced its estimates for FY26/27 revenue, EBITDA, and PAT by ~4%, 4%, and 7%, respectively. For FY27 alone, the cuts stand at ~1%, 3%, and 3%, indicating continued caution.
The revised target price is based on 18x EV/EBITDA for FY27E, with the brokerage seeing long-term value despite near-term headwinds.
Looking ahead, CONCOR has guided for a 13% volume growth in FY26, split between 10% in EXIM and 20% in domestic volumes, suggesting a potentially stronger second half if logistics bottlenecks ease.
Disclaimer: The views expressed in this article are those of the brokerage firm and do not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
