CONCOR - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 3.5
| Stock Code | CONCOR | Market Cap | 40,133 Cr. | Current Price | 527 ₹ | High / Low | 653 ₹ |
| Stock P/E | 31.7 | Book Value | 167 ₹ | Dividend Yield | 1.75 % | ROCE | 13.8 % |
| ROE | 10.7 % | Face Value | 5.00 ₹ | DMA 50 | 513 ₹ | DMA 200 | 548 ₹ |
| Chg in FII Hold | -3.33 % | Chg in DII Hold | 2.86 % | PAT Qtr | 329 Cr. | PAT Prev Qtr | 377 Cr. |
| RSI | 61.8 | MACD | 0.01 | Volume | 9,94,439 | Avg Vol 1Wk | 21,72,557 |
| Low price | 473 ₹ | High price | 653 ₹ | PEG Ratio | 4.75 | Debt to equity | 0.07 |
| 52w Index | 30.2 % | Qtr Profit Var | -4.17 % | EPS | 16.6 ₹ | Industry PE | 23.4 |
📊 Analysis: CONCOR shows moderate fundamentals with ROE at 10.7% and ROCE at 13.8%, which are relatively weak compared to industry leaders. Debt-to-equity is low (0.07), ensuring financial stability. Dividend yield of 1.75% provides some income support. However, the PEG ratio of 4.75 indicates significant overvaluation relative to growth. Current P/E of 31.7 is higher than the industry average of 23.4, suggesting the stock is priced at a premium. Technicals show neutral momentum with RSI at 61.8 and MACD near zero, indicating consolidation.
💰 Ideal Entry Zone: Considering DMA levels (50 DMA at 513 ₹, 200 DMA at 548 ₹) and support near 473 ₹, the ideal long-term entry zone is 500–515 ₹. This range aligns with valuation comfort and technical support.
📈 Exit / Holding Strategy: For existing holders, CONCOR is better suited for medium-term holding (2–3 years) rather than long-term compounding due to modest efficiency metrics. Exit strategy: consider partial profit booking near 630–650 ₹ resistance zone. Long-term holding is viable only if ROE improves above 15% and earnings growth stabilizes. If quarterly profit declines persist, reducing exposure is advisable.
Positive
- ✅ Low debt-to-equity (0.07) ensures financial safety.
- ✅ Dividend yield of 1.75% provides steady income.
- ✅ EPS of 16.6 ₹ supports earnings visibility.
- ✅ DII holdings increased (+2.86%), reflecting domestic institutional confidence.
Limitation
- ⚠️ ROE (10.7%) and ROCE (13.8%) are weak compared to peers.
- ⚠️ PEG ratio of 4.75 suggests significant overvaluation.
- ⚠️ Current P/E (31.7) is above industry average (23.4).
Company Negative News
- 📉 Quarterly profit declined from 377 Cr. to 329 Cr. (-4.17%).
- 📉 FII holdings decreased (-3.33%), showing reduced foreign confidence.
- 📉 Weak efficiency metrics limit long-term compounding potential.
Company Positive News
- 📈 Stable dividend yield supports income investors.
- 📈 Domestic institutions increased stake (+2.86%).
Industry
- 🏦 Industry P/E at 23.4 indicates CONCOR trades at a premium.
- 🏦 Logistics sector has long-term growth potential driven by infrastructure expansion and trade growth.
Conclusion
🔎 CONCOR is a financially stable company with low debt and steady dividends, but weak efficiency metrics and high PEG ratio limit its attractiveness for long-term compounding. Ideal entry zone is 500–515 ₹. Suitable for medium-term holding (2–3 years) with exit near 630–650 ₹ resistance unless profitability improves significantly.