CONCOR shares shed over 2% despite rise in Q3 profit; Nomura sees 31% upside

CONCOR's revenue climbed by 3.6 percent during the third quarter, rising from Rs 1,920 crore in the year-ago period to Rs 1,988.4 crore. The numbers were also higher sequentially, as the revenue in the September 2022 quarter was Rs 1,970.6 crore.

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Container Corporation of India (CONCOR) shares lost over 2 percent in the morning session on January 24, a day after the company declared its third quarter earnings.

The net profit of Container Corporation of India (CONCOR) jumped 3.5 percent on-year to Rs 296.5 crore in the third quarter of 2022-23 (Q3 FY23), as per the financial results declared by the public sector company on January 23.

In the year-ago period, CONCOR had reported a net profit of Rs 287 crore. Sequentially, the profit after tax has declined in the December 2022 quarter, as it stood at Rs 302.80 crore in Q2 FY23.

At 9:48am, Container Corporation was quoting at Rs 681.00, down Rs 20.00, or 2.85 percent, on the BSE. It has touched an intraday high of Rs 692 and an intraday low of Rs 676.75.

CONCOR's revenue climbed 3.6 percent in the third quarter, rising from Rs 1,920 crore a year ago to Rs 1,988.4 crore. The numbers were also higher sequentially, as revenue in the September 2022 quarter stood at Rs 1,970.6 crore.

The firm reported an earnings before interest, taxes, depreciation and amortisation (EBIDTA) of Rs 426.4 crore in Q3 FY23, which was 14.1 percent higher than Rs 373.8 crore clocked a year back. The company's margin was up 21.4 percent in the December 2022 quarter as against 19.5 percent in the previous year.

Apart from releasing the quarterly results, CONCOR informed the stock exchanges that its board has cleared a third interim dividend for FY23 of 80 percent or Rs 4 per equity share of a face value of Rs 5 each, amounting to Rs 243.72 crore.

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Global research firm Nomura has a 'buy' rating on the stock with target at Rs 895 per share, an upside of over 31 percent from the current market price. It is of the view that Q3 revenue and EBITDA missed estimates, but EXIM profitability and LLF was largely in-line.

"Sales was a miss as realisations, especially EXIM was below estimates. EBITDA margin miss was largely led by weakness in domestic profitability, while we await management commentary on weak domestic profitability and market share loss and to any update on divestment," the brokerage firm said.

With agency inputs

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