CONCOR - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:15 pm

Fundamental Rating: 3.9

📊 Core Financials:

- Quarterly PAT at 377 Cr. vs 258 Cr. shows sequential growth, but YoY profit variation is negative (-4.9%).

- EPS of 16.8 ₹ reflects moderate profitability.

- ROCE (13.8%) and ROE (10.7%) are modest, indicating average efficiency.

- Debt-to-equity ratio of 0.07 highlights low leverage.

- Cash flows remain stable, supported by strong logistics demand and government contracts.

💹 Valuation Indicators:

- Current P/E of 29.8 is above industry average (24.5), suggesting premium valuation.

- P/B ratio ~ 3.0 (502 ₹ / 167 ₹), reasonable compared to peers.

- PEG ratio of 4.47 highlights growth lagging valuation.

- Intrinsic value appears slightly lower than current price, limiting margin of safety.

🚛 Business Model & Competitive Advantage:

Container Corporation of India (CONCOR) operates in logistics and containerized rail transport. Its competitive advantage lies in government backing, pan-India network, and integration with Indian Railways. The company benefits from rising demand for logistics and infrastructure growth but faces margin pressures and competition from private players.

🎯 Entry Zone & Long-Term Guidance:

- Entry zone: 480–495 ₹ (near support levels and undervaluation zone).

- Long-term holding: Suitable for investors seeking exposure to India’s logistics and infrastructure growth story. Accumulate on dips for steady returns, but monitor profitability trends.

Positive

• Low debt-to-equity ratio (0.07)
• EPS of 16.8 ₹ reflects consistent profitability
• Government backing and strong logistics network
• Sequential PAT growth (258 Cr. → 377 Cr.)

Limitation

• High P/E (29.8) compared to industry average
• PEG ratio of 4.47 shows growth lagging valuation
• Modest ROE (10.7%) and ROCE (13.8%)
• Weak technical momentum (RSI 37.6, MACD negative)

Company Negative News

• FII holdings decreased (-0.36%)
• DII holdings decreased (-0.30%)
• Quarterly profit variation (-4.9%)

Company Positive News

• Sequential PAT growth from 258 Cr. to 377 Cr.
• Stable dividend yield at 1.85%
• Strong 52-week performance (+12.2%)

Industry

• Industry P/E at 24.5 indicates sector is moderately valued
• Logistics demand driven by infrastructure expansion and trade growth
• Competition from private logistics and transport companies

Conclusion

⚖️ CONCOR shows steady fundamentals with low debt and government support, but valuations are stretched and profitability metrics are modest. Best accumulated near 480–495 ₹ for long-term exposure to India’s logistics and infrastructure growth story.