Container Corporation of India Limited is a public-sector company managed by the Indian Ministry of Railways. Also known as CONCOR, the company is known to provide cost-effective logistics solutions through its network of 79 inland container depots and container freight stations.
The market capitalisation of CONCOR Limited India, as of mid-June 2018, is Rs.32,160 crore.
Company’s Wealth and Recent Performance
- For the fourth quarter of the financial year 2017-18, the company’s standalone income from operations was reported to be at Rs.1,681.51 crore. In comparison to the same quarter of the previous fiscal year, this is a marginal increase, although with the respect to the Q3 FY18, the income is down by roughly Rs.40 crore.
- For the same period, the profit after tax was disclosed to be at Rs.293.64 crore. Once again, this is a marginal increase over the PAT reported for the December quarter. However, this figure is down by roughly 10% with respect to the March quarter of the previous fiscal year.
- The company’s performance for the year, which ended on March 31, 2018, was certainly admirable. Its standalone income from operations for the year stood at Rs.6,167.12 crore, in contrast to Rs.5,606 crore in the previous fiscal year.
- The corresponding profit after tax for the year was Rs.1,049.04 crore - an increase of over 15% over last year. The consolidated operations of CONCOR Limited too reported an increase in income and profit after tax.
- The total assets of the company at the end of the financial year 2017-18 were reported to be worth Rs.10,860.50 crore. Its working capital for the same period was disclosed to be at Rs.3,880.37 crore. The earnings per share for the year is Rs.43.05.
Container Corporation of India Limited Stock Trends in 2018
- On January 2, 2018, the share price of CONCOR Limited was Rs.1,378.90 on the National Stock Exchange. In the second week of the month, the stock price rose to enter the Rs.1,400 territory. The shares were traded at levels above Rs.1,430 for the most of the month. Around the same time, the scrip reached its 52-week high of Rs.1,500. Towards the end of January, the prices dropped slightly to enter the Rs.1,300 region again.
- In February, owing to turbulent market conditions across the world, the scrip lost more points. This drop in the price of CONCOR shares was in line with the behaviour of BSE SENSEX, which too suffered in this period. At the start of the month, the shares were trading at levels around Rs.1,390. By the end of the month, the shares had lost more than Rs.80 in value and went down to close at Rs.1,304.15 on February 28.
- The month of March did not bring any relief to the investors either. The scrip, which commenced the month at Rs.1,300, moved on to shed more points over the course of the month. In fact, it was in March that the scrip hit its 52-week low of Rs.1,096.10. However, the prices did recover in the final week, although the gains made here were marginal and still less than its opening price at the start of the month. The closing price on March 28 was Rs.1,245.10 on the NSE.
- The CONCOR shares commenced a rally in the first half of April, driven by favourable market conditions. The stock price of Container Corporation of India Limited gained momentum and ascended back to its previous levels above Rs.1,300. In the second half of the month, the prices fluctuated around this mark and managed to retain their bearings in this region. The scrip ended the month at Rs.1,303.90 on the NSE.
- May 2018 proved to be another eventful month for the investors. The shares maintained their heading at levels above Rs.1,350 and continued to rise gradually over the course of the first week. In fact, on a couple of occasions, the CONCOR shares changed hands at levels above Rs.1,400 although they failed to sustain themselves at that point. In the second half of May, the CONCOR share price went down, though the gains made here were significantly better than the ones made over the last three months. On May 31, 2018, the closing price of CONCOR stocks was Rs.1,379.05.
Container Corporation of India Limited Stock Trends in 2016 and 2017
- At the start of January 2016, the CONCOR shares were trading at levels around Rs.1,080. The prices dipped heavily in the first month and as a result, the shares went down to be traded in the Rs.900 region. An interim dividend of 80% was announced in early February which gave the scrip a decent heading. The price rose steadily in this month to recuperate its losses. However, the rally was halted in early March when the scrip went down again. In the second half of March, the prices rose once again and this time, the price went beyond the Rs.990 mark.
- The second quarter of the calendar year turned out to be a terrific one for the investors. CONCOR shares commenced a bull run which lasted for a significant period. In early April, the stock price of Container Corporation of India Limited was Rs.1,014. By the end of the month, the scrip had ascended into levels above Rs.1,060. In May, the stock price fluctuated around these levels without any sharp spikes or drop. In June, the shares managed to enter the Rs.1,110 region for the first time since late 2015.
- The closing price at the end of June was Rs.1,144.44. Over the course of July, the CONCOR Limited shares were traded at levels above Rs.1,150. In early August, the share price soared into the Rs.1,200 territory, though it failed to stay in that region. For the remainder of the month, the scrip shed its previous gains, albeit it wasn’t in a dramatic fashion as it still stayed above the Rs.1,100 mark.
- In September, the prices dipped slightly to enter the Rs.1,000 territory. However, in the final week of the month, the prices started to rise again and this rally extended well into October. The scrip once again found itself in the Rs.1,100 region although things changed dramatically post demonetisation. CONCOR shares lost more than 15% in less than two weeks and as a result, the stock price was down to be traded in the Rs.900 levels. Things did not change a lot in December and the closing price at the end of the year was Rs.871.80.
- The first quarter of 2017 was a pleasant one for the investors. After losing out heavily in the markets towards the end of the previous year, the share price of Container Corporation of India Limited rose slowly and steadily in the first three months. An interim dividend of 96% was announced in February. By the end of March, the CONCOR shares were back in the Rs.1,000 region.
- In early April, the company announced that it will issue bonus shares in 4:1 ratio. This announcement drove the stock price up by more than 20% in just two weeks. At the end of the month, the closing price was Rs.1,217.85. The share price varied around this level over the course of May. Things got a bit rocky in June as the scrip went down to be traded in the Rs.1,100 region.
- A similar trend was observed in July as well, with the scrip trading at levels around Rs.1,130-Rs.1,190. It wasn’t until mid-August that the price rose again and this time, the gains made were as remarkable as the ones made in April. The closing price of CONCOR shares at the end of August was Rs.1,319.90 on the NSE. The prices continued to soar through the first half of September. However, it was immediately followed by a sharp nosedive.
- The price in October remained at levels above Rs.1,300. On a couple of instances, the price entered the Rs.1,400 region during intraday sessions. The CONCOR shares exhibited a similar trend in November as well. The price dipped slightly in November end but it wasn’t significant. The prices rose again in the second half of December to end the year at Rs.1,379.35.
Should you invest in Container Corporation of India Limited?
- The share price of CONCOR Limited has grown by roughly 30% since the start of 2016. While the markets did go through their usual ups and downs in this period, the CONCOR shares managed to deliver decent returns in this two-and-a-half-year period.
- In the transport and logistics sector, CONCOR Limited is ranked at the second place in terms of market capitalisation and net profit, trailing only behind Interglobe Aviation. Its P/E ratio, as of March 31, 2018 is 28.92, which is quite close to the industry average of 25.55.
- Financially speaking, the company has performed well over the course of last few years. It has managed to deliver steady profits and has also undertaken various strategic initiatives to boost its operations. Its overall physical performance, that is, cargo handling capacity has also increased gradually over the last few years.
- Its most recent initiative includes singing a MoU with the Bangalore Airport Terminal Services Private Limited. The company has also decided to invest substantially over the next few years in infrastructure and IT-enabled systems to strengthen its operating capabilities. Apart from this, CONCOR is also working on an intermodal system to reduce logistics cost.
- It goes without saying that the company is heading in the right direction. As the infrastructure sector receives a boost in India, CONCOR is more than likely to benefit from it. Investing in scrip of this company from a long-term perspective is a feasible idea. However, it is strongly suggested that you do your own research before investing.
Container Corporation of India Limited is a public sector company that is governed and managed by the Indian Railways. It is a Navratna company that specialises in cargo transport and logistics primarily over land through the rail. Its core business operations comprise carrier services, and managing terminals and warehouses over the country. With the help of its extensive network, CONCOR Limited coordinates seamlessly with various agencies and services which are a part of the containerised cargo trade. As a result, it is able to provide a high degree of efficiency when it comes to storing and moving cargo over long distances in a cost-effective manner.
History of the Company
In 1988, the company was incorporated under the Companies Act of 1956 as a public sector undertaking under the Ministry of Railways. The main objective of the company was to boost cargo transport in India with the help of intermodal freight transport and containerisation. This was because railways served as a cheaper option to transport cargo over medium and long distances. As a result, Indian Railways commenced its operations in the door-to-door domestic cargo market in 1966 in special DSO containers. It wasn’t until 1981 that the Indian Railways started using ISO containers to move freight. By 1988, the organisation increased its coverage and handling capacity in the country with the help of 7 inland container depots. Over the course of next decade, CONCOR Limited further boosted its operations through strategic alliances and initiatives.
Management of the Company
Mr. V Kalyana Rama - Chairman & Managing Director
Mr. Rama serves as the Chairman and the Managing Director of the Container Corporation of India Limited. He graduated as an Indian Railway Traffic Service officer from the 1987 batch and also served as a mechanical engineer with the ICWAI. Before joining the Indian Railways, Mr. Rama worked with BHPV and BHEL, and holds a tremendous amount of experience in the domain of engineering, railway & multi-nodal logistics, project planning and commissioning, and system design. Before joining the Board of Directors of CONCOR, he held several key positions like Executive Director and Chief General Manager.
Mr. Pradip Kumar Agarwal - Director (Domestic Division)
Mr. Agarwal became the Director of CONCOR Limited, Domestic Division on July 1, 2016. He is a part of the Indian Railway Traffic Service and has been a part of the Indian Railways for more than 17 years. Over his impressive tenure, he has worked on several key assignments at Divisional and Zonal levels while focussing on marketing, logistics, and safety. He joined Container Corporation of India Limited in the year 2006 as the Group General Manager of the Western Region and followed it with a four-year spell as the Chief General Manager. Prior to becoming the Director of Domestic Division, he worked as the Chief Executive Officer for APM Terminals, Mumbai.
Mr. Sanjay Swarup - Director (International Marketing & Operations)
Mr. Swarup holds a degree in B.E (Hons) Electronics & Communication from the IIT Roorkee which he followed with a PG Diploma from the IIM Bangalore. Prior to joining Indian Railways, he worked in BHEL and is also a part of the 1990 batch of the Indian Railway Traffic Service. He has held several key positions over his career with CONCOR and Indian Railways, the most notable of which is the Chief Manager post in Tughlakabad and Dadri - the two largest terminals of CONCOR Limited. He is also credited with introducing innovative marketing policies that have helped in improving the business of the organisation.
Container Corporation of India Limited Listings in NSE, BSE, and Indices
The shares of CONCOR India Limited are available for trading on the Bombay Stock Exchange Limited and the National Stock Exchange Limited. The codes for the same are as follows:
- NSE Code - CONCOR
- BSE Code - 531344
- ISIN - INE111A01017
- Sector - Transport & Logistics
Coming to the stock market indices, CONCOR comprises the following indices:
- NIFTY 100
- NIFTY 500
- NIFTY 200
- NIFTY Next 50
- S&P BSE MidCap
- S&P BSE 100
- S&P BSE 500
- NIFTY Infrastructure
There are many more indices which have the Container Corporation of India Limited company listed. However, it does not form a part of the Nifty 50 index or S&P BSE SENSEX.
C-3, Mathura Road,
Opposite Apollo Hospital
New Delhi - 110-076
Phone number: +91-11-41673093/94/95/96
Stocks vs. Mutual Funds: here's what we recommend
Stock market investments require a lot of research and knowledge. They do not generally offer any tax benefits and are regarded as high-risk investments. Hence,it is crucial to have a diversified portfolio. At Bankbazaar, we encourage our readers to invest on mutual funds.It doesn't require a lot of knowledge and equity linked mutual fund schemes offer tax benefits. Additionally, since mutual funds comprise stocks from multiple companies, they help in building a diversified portfolio.
The contents of this post/blog does not constitute financial or other professional advice nor does it imply in any manner a principal-agent relationship, and is not a professional advice on a specific financial matter.