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

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26 Aug, 2025 12:21

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Goldman Sach has upgraded Container Corp of India to “buy” from “neutral” and raised the target price to Rs 720 a share, by 21 percent upside from current market price. This upgrade comes even as the stock has dropped 25 percent from its peak in November.

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 subsequently to JNPT 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.

Read: ITC becomes 11th Indian firm to cross Rs 5-trillion market value

With the DFC set to be fully operational over the next 18 months, the brokerage believes that Concor could reach an inflection point as the shift from road to rail for cargo accelerates.

"We believe consensus estimates are yet to reflect the slowdown in global trade, we think the stock is pricing it in and along with the waning away of M&A premium (due to a potential delay in the government stake sale), we believe the stock is well positioned for outperformance as positive catalysts play out", Goldman said in its latest report. The stock trades at FY25 estimates PE of 22.4 times which is at a discount to its long-term median multiple of 25 times.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.​