Major brokerage firms have revised their target ratings for shares that fell nearly 8 per cent over the last one week, as per BSE analytics, as of September 23. Brokerages see tough competition and weak growth for rail container traffic.
Brokerage House Goldman Sachs has revised its rating for the shares of state-owned railway company Container Corporation of India (CONCOR).
The brokerage firm has downgraded its ratings for the to Sell from Neutral; slashing the target price to Rs 820 from Rs 850.
As per Goldman Sachs, Concor’s earnings have disappointed. Moreover, the brokerage firm sees weak growth for rail container traffic.
Additionally, the brokerage house has cited that Market share concerns amid rising competition. Goldman Sachs also thinks that earnings downgrade cycle is likely to continue.
“Competition from both road and from other CTOs will keep volume/margin under pressure,” said the brokerage firm.
Likewise, brokerage firm Morgan Stanley, has also Downgraded its ratings to Underweight from Equal weight; cutting the target price to Rs 774 from Rs 1083.
The downgrade came on the back of continued EXIM volume weakness and a sharp cut in its tariff at JNPT. Concor cut its recent measures to boost EXIM trade; risk to margins.
At the time of writing this article, the stock was trading in the red at Rs 878.65 per share, down 1.66 per cent against the previous close of Rs 893.45 per share. The stock was trading in the range of Rs 900.05 and Rs 877.10 per share, at around 12 PM. At around the same time, around 1.10 lakh shares were changing hands against two weeks’ average quantity of 0.86 lakh shares on BSE.
For Q4 FY24, the company’s overall net profit surged by 9.88 percent to Rs 301.25 crore. The company posted a total net profit of Rs 274.14 crore a year ago. Furthermore, consolidated revenue from operations stood at Rs 2,417.87 crore in the quarter under review, compared to Rs 2,281.75 crore in the previous year.
Within this, the company declared a final dividend of Rs 2.50 (50%) each equity share with a face value of Rs 5 for the fiscal year 2023-24. The current dividend yield of CONCOR shares is 1.31%.…Read more by Samta Barnali Achintya
