Container Corporation of India Ltd. (CONCOR) – Overview:
CONCOR is the largest company in the listed logistic space in India in terms of market cap. The company is a government undertaking corporation incorporated in March 1988 under the ownership of the Indian railway. Container Corporation of India is the market leader with the largest network of 61 ICDs/CFSs in India including 59 terminals and 2 strategic tie-ups.
The company operates in three segments – a carrier, a terminal operator, and a warehouse operator. All 61 terminals are well connected with the major gateway ports across India with 15 container trains. In addition to the core offering of inland transport by rail for containers, Concor also covers the management of Ports, air cargo complexes, and establishing a cold chain.
Container Corporation of India Ltd. – Financial analysis
The company incurred revenue of INR 7652 Crores in FY 2022 as against INR 6427 Crores in FY 2021. The net profit has gone up from INR 469 crores in FTY 2021 to INR 1028 Crores in FY 2022. The earnings per share (EPS) also went up from 6.67 in FY 2020 to 17.27 in FY 2022.
Container Corporation of India Ltd. – Valuation parameters
The Container Corporation of India Ltd. is a large-cap company with a market cap of INR 45,542 Crores. The face value of the concor stock price is INR 5 per equity share. Return on capital employed is ~13 percent while return on equity is ~10 percent. The price-to-earnings ratio of the stock is 42.66 while the stock is trading at 4.14 price to book value. The price-to-earnings ratio of the sector is 55.64 and the price-to-book value sector is 5.28.
The government of India has a controlling stake in the company with 54.8 percent equity holding. While FIIs have increased their holdings from 23.54% in March 2022 to 23.65% in June 2022, DIIs have declined their holdings from 17.01 to 16.93 during the same period. Both FII and DII hold a little over 40 percent of the equity in the company.
The cabinet of the current government had approved the strategic sale of a 30.8 percent stake, along with management control in the company in November 2019. Once disinvestment is completed, the government will retain a 24 percent stake without any veto powers in the company. This will further boost the top and bottom lines of the company. It is a strong stock in this segment to buy and hold in the portfolio. This is one of the best companies that will benefit from the new National Logistic Policy of India 2022.
Container Corporation of India Ltd. Leadership
Container Corporation of India Ltd. is a government of India initiative. Mr. V. Kalyana Rama is the Chairman & Managing Director of the company. He is a Mechanical Engineer with ICWAI. Mr. V. Kalyana Rama is an Indian Railway Traffic Service (IRTS) officer of the 1987 batch. Before joining this company, he worked in BHPV & BHEL. He was instrumental in the development of container depots in the South Central and Southern regions of CONCOR. He has wide experience in the field of Engineering, System Design, Railway & multi-modal logistics operations, and Project planning and commissioning.
The Concor share price is looking strong in the technical chart with strong trading volume over the last few trading days. The trading volume of the script is above 100 DMA during this period. It seems the counter is ready to move up sharply. The stock is corrected after reaching the 771 level and is trading at its resistance level. Once the stock starts bouncing along with support from the broader market, it will move up sharply to reach its previous high of 780 level and go beyond it to reach an all-time high.
The Concor share price target will be 800 and 840 levels in the short term if the broader market supports it. The company’s share price is trading above all its short and long-term moving averages on the daily chart. The stock is also trading above its super trend signals and is in a bullish up move. Buy at this level or on Dip.