Shares of Container Corporation of India (Concor) dropped by 2.49% to trade at ₹835 as of the morning session on December 12. The decline came after a bearish note from Goldman Sachs, which reiterated its sell rating on the stock with a target price of ₹710, citing concerns over weak growth in rail container traffic and rising market competition.
Concor’s stock has seen a marginal rise of 0.69% over the past month but has suffered a decline of 26.69% in the last six months. Year-to-date, the stock is down by 2.83%. Despite the broader market strength in recent weeks, Concor’s underperformance reflects investor concerns tied to its operational challenges and earnings outlook.
Reason for Decline
Goldman Sachs highlighted several issues impacting Concor’s growth prospects:
- Weak growth in rail container traffic.
- Market concerns amidst rising competition.
- Earnings downgrades likely to persist.
- A preference for Adani Ports over Concor in the logistics sector. The brokerage also noted that Concor’s earnings are estimated to be 7% below consensus, adding to the bearish sentiment around the stock.
Disclaimer
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