Reviews

CONTAINER CORPORATION OF INDIA
Ticker : 531344 
FV:Rs 5 
52-Week H/L: Rs 568.80/433.16

We had recommended Container Corp in volume no. 35, issue no. 5 (dated Nov 26, 2018), when the scrip was trading at Rs 671. Our recommendation was backed by factors such as strong growth delivered in Q2FY19 and robust growth expected in volumes and revenue in FY19E. In Q3FY19, the company achieved 6 per cent volume growth in exim segment leading to 8.2 per cent growth in revenue to Rs 1572.2 crore. EBITDA increased by 28.5 per cent YoY from Rs 259.6 crore to Rs 333.5 crore. PAT during the quarter declined by 5 per cent to Rs 274.7 crore. The coastal shipping stream is expected to commence from Q4FY19. It also plans to open additional 18 MMLPs by FY20. Considering the expected good volume growth with entry into distribution logistics, we urge investors to HOLD the scrip.

HIL
Ticker : 509675 
FV:Rs 10
52-Week H/L: Rs 2600/1485.10

We had recommended HIL in volume no. 35, issue no. 8 (dated Dec 17, 2018) when the scrip was trading at Rs 2,155. Our recommendation was backed by factors such as robust financial performance and acquisition. In December quarter, the company’s building solution segment performed well by delivering good profits. The revenue was up by 15.7 per cent YoY to Rs 326.3 crore. EBITDA grew by 12.3 per cent YoY. However, PAT declined from Rs 14.3 crore to Rs 7.01 crore due to forex losses. Also, due to acquisition in Europe, the company took a loan, leading to higher finance costs. Also, to expand business, it has commenced production of its dry mix plant at Jhajjar, UP. We expect the pipes division to show traction going forward and hence urge investors to HOLD the scrip.