>Container Corporation of India (NOMURA)

■ Action
Container traffic data released by the Indian Ports Association suggest flattish m-m activity in April 2010, though y-y growth was still healthy at 21.4%. Note that April has historically seen subdued EXIM traffic activity over March, with the latter period being inflated by a boost in year-end activity. However, with the stock trading at 17x FY11F P/E and possible downsides to our estimates, we maintain NEUTRAL.

■ Catalysts
Strength in port traffic could trigger a positive change, in our view, on Container Corp of India. Risks to margins exist in the domestic segment, however, and these could pose as negative risks to estimates and targets.

■ Anchor themes
A pick-up in industrial activity will likely lead to a turnaround in EXIM traffic, benefiting port entities and container logistics companies. The key is to pick stocks that still offer value after a substantial run-up in 2009.

To read the full report: CCI