Container Corporation - Exim volumes trajectory possibly strengthening - Kotak

Post a strong end to the year (4Q exim volumes up 6% yoy) and positive Apr-May data (higher exports and better exim balance), Concor expects strong 10% growth in FY2014E volumes (KIE est. 8%). Margin may remain subdued (guides for 50 bps decline; KIE est. 125 bps) as it looks to leverage imminent benefits (double-stacking, telescopic rate). The company remains positive on PFT investments (to eventually yield more versus pure ICD investments/cash accumulation) although returns may be under pressure till full scale-up.

Retain ADD.

Source : Equity Bulls

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