Navratna Stock Declares 3rd Interim Dividend, Fixed Record Date, Should You Buy, Hold, Or Sell?

Container Corporation of India's Stock Performance

The stock of Container Corporation of India currently trading at Rs 658.60 apiece on NSE, down 3.20% from its previous close. The stock's recorded 52 week low is Rs 554 apiece and the 52-week high is Rs 828.75/share, respectively. The stock has fallen over 6% in the past 1 week, over 7% in the past 1 month and over 13% in the past 3 months, respectively. It gained over 6% in the past 1 year. In the past 3 years, it gained over 17%. In the past 5 years, it gained over 14%.

Container Corporation of India Dividend

The Container Corporation of India in its regulatory filing to BSE has said, "The Board has declared 3rd Interim Dividend for FY 2022-23 of 80% i.e. Rs.4.00 per equity share of face value of Rs.5/- each amounting to Rs.243.72 crores. The record date for the purpose of payment of Interim Dividend has been fixed as 06.02.2023. The Interim dividend will be paid/ dispatched to the shareholders on or after 13.02.2023. The payment of dividend will be made within 30 days of its declaration."

Buy, Sell Or Hold? ICICI Securities' Comments on the stock

According to the brokerage, Container Corporation of India's (Concor) performance missed consensus estimates. Key points: 1) EBITDA/teu declined due to higher proportion of domestic business; 2) EBITDA margin was down 390bps QoQ to 21.4%; 3) rail freight expenses were higher due to removal of certain discounts by Indian Railways; 4) company is concentrating on recouping its lost market share by introducing various schemes; and 5) Board has recommended the third interim dividend of Rs3/share, taking the 9MFY23 dividend to Rs8/share. "Going ahead, we see the proportion of domestic revenues increasing further from the current 36%, which is likely to keep margins constrained. Besides, the company's attempt to recoup market share might impact margins further. Taking cognisance of lower margins and elevated cost structure, we prune our FY23E/FY24E EPS by 4%/7% respectively. Our revised target price works out to Rs575 (earlier: Rs625) on an unchanged multiple of 26x FY24E EPS. Maintain SELL," the brokerage has said.

Disclaimer

The stock has been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.