Container Corporation of India (Concor) shares are in focus today as analysts at Kotak Institutional Equities flagged a potential downside of ₹50–100 per share—nearly 7–14% off the current target price of ₹740—due to lower crude prices potentially impacting its volume growth.
According to Kotak, the fall in crude prices is expected to have a negative impact on Concor’s competitiveness, especially against roadways, which directly compete with the company for both EXIM and domestic cargo volumes.
The brokerage highlighted that 10% of Concor’s traffic comprises light-weight cargo, which is particularly sensitive to fuel price movements. As diesel becomes cheaper, road transport becomes more viable, potentially diverting volumes away from rail-based logistics players like Concor.
While Kotak has assumed a low double-digit volume growth in its estimates, it warned that lower-than-expected volumes could erode earnings, bringing down the fair value by ₹50–100 per share.
