Credit Suisse turns cautious on Container Corporation of India (CONCOR), and says the company is losing advantage in their top six terminals to the private sector.
"We will definitely try to pass on the price hike. It will be done in phases. We haven‘t passed it on completely", P Alli Rani, Director-Finance Container Corporation of India told CNBC-TV18.
Container Corporation of India's (Concor's) new chief V Kalyana Rama who took over as the company's Chairman and Managing Director earlier this week said that company hopes maintain volume growth guidance of 7.5 percent in FY17.
Speaking to CNBC-TV18, Director & CFO, P Alli Rani said Concor's volumes have declined year-on-year but sequential improvement is visible.
The order book for the company currently stands at Rs 780 crore, said A Nithya, whole-Time Director of the company.
Volume growth in FY17 will be in double-digits, especially on the low base of FY16. The total volumes for the first nine months of FY16 were down 7.6 percent, says Alli Rani, Director-Finance, Concor, in an interview to CNBC-TV18.
Nomura believes that CONCOR will benefit the most from Dedicated Freight Corridor and expects freight volumes to double over next 10 years after the Western DFC is commissioned.
The company‘s management has reduced its FY16 growth guidance from the 9-10 percent to 7.5-8 percent. The topline growth has been cut to 11 percent from the earlier 15 percent, Gupta said.
Container Corp is one of the top mid cap picks by Kotak Securities. The broking house says the company will benefit from higher export volumes due to falling rupee and an improvement in global demand.