Goldman Sachs has slashed its target price for Container Corporation of India (CONCOR) to ₹710 from ₹800. The brokerage has a sell call on the stock and cites weak growth in rail container traffic and increasing market competition as key concerns. CONCOR’s H1FY25 volume growth was reported at 6% YoY, driven by a modest 3% increase in EXIM volumes and a stronger 22% rise in domestic traffic. However, the current run rate for October and November suggests limited upside, making management’s full-year guidance appear overly ambitious.
Goldman Sachs also raises concerns about the company’s valuation, noting that CONCOR currently trades at 34x FY26E P/E and 20.5x FY26E EV/EBITDA, significantly above its long-term median of 18.5x. The brokerage believes the earnings downgrade cycle will persist as rail container traffic growth struggles to pick up amid intensifying competition. Despite the recent correction, further downside is anticipated, reflecting a challenging operating environment.
