CONCOR - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📦 Fundamental Analysis: Container Corporation of India Ltd (CONCOR) Fundamental Rating: 3.4

🧮 Core Financials Overview

Earnings

EPS: ₹16.9 ➜ modest profitability

PAT dropped from ₹367 Cr to ₹299 Cr ➜ QoQ contraction of 5.81%

Return Ratios

ROE: 10.8%, ROCE: 13.7% ➜ average capital efficiency

Balance Sheet

Debt-to-Equity: 0.07 ➜ conservative leverage profile

Dividend Yield: 1.55% ➜ reasonable for passive income seekers

📊 Valuation Analysis

Metric Value Insight

P/E Ratio 34.3 above industry avg (28.8) ➜ priced at a premium

P/B Ratio ~3.63 (₹592 / ₹163) ➜ acceptable given asset-heavy biz

PEG Ratio 4.49 high — suggests stock is richly valued relative to growth

📉 Conclusion: Current valuation appears stretched, especially considering recent earnings decline and modest growth prospects.

🚛 Business Model & Competitive Edge

Operates in container freight, logistics, and rail transportation

Key asset: Pan-India infrastructure including ICDs and rail-linked logistics hubs

Competitive Moats

PSU-backed reliability and access

Strategic rail freight advantage over road transport

Partnerships with Indian Railways

⚠️ However, competition from private logistics firms and shifting freight dynamics pose challenges.

📉 Technical Indicators

RSI: 39.8 ➜ close to oversold territory

MACD: -1.61 ➜ bearish bias emerging

Price trading below both DMA 50 & 200 ➜ downtrend confirmation

✅ Suggested Entry Zone: ₹550–₹575 📌 Look for signs of price consolidation and reversal before initiating long positions

🧭 Long-Term Investment View

🌱 Infrastructure-linked play with potential upside from economic expansion and freight digitization

🛤️ Beneficiary of rail-based transport modernization

🔄 Cyclical exposure — sensitive to economic activity and industrial output

📌 Best suited as a tactical pick during broader market correction or policy-led infra boost. Accumulate in dips, with expectations of mid-single-digit growth and moderate dividend income.

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