Container Corp Q4 Review - Divestment Can Unlock Value: ICICI Securities

An employee observes a shipping container being lifted by a gantry crane.   (Photographer: Billy H.C. Kwok/Bloomberg)

Container Corp Q4 Review - Divestment Can Unlock Value: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Large non cash provisions booked by Container Corporation of India Ltd. in Q4 FY21 leads to a miss, reported Ebitda at Rs 1.9 billion Ebitda was down 60% YoY and ~50% QoQ.

Adjusted for the higher land licence fee expense and employee costs, we estimate Ebitda to be flat QoQ – still a miss when compared to peer performance, given the external margin triggers.

Rs 5.17 billion of land licence fee sets up for a prospective FY22.

Valuations have largely shaken off the possibility for higher land licence fee incidence, while acknowledging higher probability of divestment as well.

From here on real progress towards divestment and execution/profitability will drive performance.

Click on the attachment to read the full report:

ICICI Securities Conctainer Corporation of India Q4FY21 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.