Container Corporation an underperformer: Karvy
Karvy Stock Broking has revised its rating on Container Corporation of India from market performer to underperformer with a target price of Rs 706 in its April 15, 2009 research report.
“Container Corporation of India is expected to report revenue decline of 12.4% YoY (QoQ decline of 6.5%) to Rs 7.91 billion and net profit is expected to decline by 11% YoY (QoQ decline of 12.4%) to Rs 1.8 billion during the Q4FY09. We have revised the revenue estimated downward by 4.3% to Rs 33.6 billion in FY09 and by 9.9% to Rs 36 billion in FY10 and net profit estimates downwards by 0.6% to Rs 8.07 billion in FY09 and by 8.6% to Rs 8.34 billion in FY10 considering slowdown in container trade and increased competition from private players. We are revising our target price from Rs 770 to Rs 706 based on 11xFY10 earnings. We are revising our rating from Market performer to Underperformer,” says Karvy Stock Broking’s research report.
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