Container Corporation of India gains on getting new CMD

Shares of Container Corporation of India (Concor) jumped nearly 2 percent in the early trade on September 1 following the appointment of a new chairman and managing director.

The government named Sanjay Swarup the chairman and managing director of the company, the public sector undertaking told exchanges on August 31.

The director of international marketing and operations at Container Corporation, Swarup brings a wealth of experience to his new role. With this elevation, he will be responsible for overseeing the overall operations and management of the company.

Concor plays a vital role in facilitating trade and logistics, both domestically and internationally. Swarup’s appointment is seen as a strategic step to further enhance the company’s operations and strengthen its position in the industry.

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Brokerage Views

In a recent report, Goldman Sachs has upgraded Container Corp of India to “buy” from “neutral” and raised the target price to Rs 720 a share, a 5 percent upside from the current market price. The upgrade comes even as the stock has dropped 25 percent from its peak in November.

Also Read: Goldman upgrades Concor to ‘buy’, sees 21 percent upside

The brokerage firm cites Concor’s position as the primary beneficiary of rail containerisation, a trend that is expected to gain momentum as the dedicated freight corridor (DFC) connects to western coast ports by mid-2023 and to Jawaharlal Nehru Port Trust (JNPT) in Navi Mumbai 18 months later.

Despite its below-consensus estimates, Concor maintains a dominant market share in India’s rail logistics sector (70 percent). The broking firm expects a 15.5 percent earnings CAGR (FY23-FY25) for Concor, accompanied by robust cash generation.

Concor has given a return of 12.09 percent over the last six months against the benchmark Nifty’s 10.33 percent during the same period.

At 10.40 am, Container Corporation was trading at Rs 680.65 on the National Stock Exchange, 1.14 percent higher from the previous close.

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