The shares of the Mid-Cap company specializing in multimodal logistics support and containerized cargo transport are in focus after a leading Indian brokerage firm, Motilal Oswal, initiated a Buy target of Rs. 980 with a 35 percent Upside Potential.
With a market capitalisation of Rs. 44,265.23 crores on Thursday, the shares of Container Corporation of India Ltd jumped upto 0.14 percent, making a high of Rs. 745.20 per share compared to its previous closing price of Rs. 746.30 per share.
Container Corporation of India Ltd, an Indian public sector undertaking under the Ministry of Railways, engaged in multimodal logistics support and containerized cargo transport, is in focus after a leading indian brokerage firm, Motilal Oswal, initiated a Buy Target of Rs. 980 on it with an upto 35 percent Upside Potential.
The reasons for the “Buy” target
- Market Leadership and Strong Positioning: It maintains a dominant market presence, with approximately 58% share at JNPT, 56% pan-India, 37.7% at Mundra, and 48.4% at Pipavav as of March 2025. Its extensive network spans major ports and inland terminals, reinforcing its leadership and reach across India’s logistics landscape.
- Dedicated Freight Corridor (DFC) Drives Growth: The Dadri-to-Mundra DFC route, operational since May’23, has shifted CCRI’s business toward rail, enhancing efficiency. The full DFC commissioning by FY26 is expected to redirect northern hinterland volumes to JNPT, leveraging CCRI’s strong foothold.
- Volume Growth and Resilience: CCRI achieved a record 5.1m TEUs in FY25 (up 8% YoY), with domestic volumes rising 12% and EXIM volumes growing 7% despite global trade challenges. For FY26, CCRI targets total volume growth of 13% (10% EXIM, 20% domestic), driven by new services, high-margin sectors like FMCG, and DFC benefits
- Infrastructure Expansion and Capex: CCRI invested Rs. 8.1 billion in capex during FY25, with Rs. 8.6 billion planned for FY26 to drive expansion. The company aims to grow its fleet to over 500+ rakes (from 388) and 70,000 containers (from 53,000+) by 2028, while targeting 100 terminals nationwide, including four new terminals to be commissioned in FY26 at Talabad, Patri, Mandalgarh, and Chunar.
- Operational Improvements and Cost Optimization: In FY25, CCRI operated 6,302 double-stack rakes, marking a 16% yearly increase and boosting capacity utilization while reducing per-unit costs. Rail freight margins improved by 55 basis points to 25.7%, driven by disciplined pricing and cost optimization.
- Additionally, first-mile last-mile (FMLM) cargo integration rose to about 60% in FY25 (up from 30-35% in FY23), with a future target of 80-85%, further strengthening end-to-end logistics efficiency.
- Financial Outlook and Valuation: It expects a 10% CAGR in blended volumes and an EBITDA margin of 23-24% over FY25- 27. The stock trades at ~16x FY27E EV/EBITDA. Reiterate BUY with a revised TP of INR980 (based on 20x EV/EBITDA on FY27E).
Financials & Others
The company’s revenue declined by 0.06 percent from Rs. 2,417.87 crore to Rs. 2,416.34 crore in Q4FY24-25. Meanwhile, the Net profit declined from Rs. 316.93 crore to Rs. 298.53 crore during the same period.
Container Corporation of India Limited (CONCOR) is India’s leading integrated logistics solutions provider, specializing in the inland movement of containers by rail, port management, air cargo complexes, and cold chain logistics. It maintains a dominant market share across major ports and inland terminals, leveraging its extensive infrastructure and network to offer multimodal transport solutions.
The company operates primarily in the transportation and logistics segment, focusing on containerized rail freight, port operations, and integrated logistics services. CONCOR manages container terminals, offers cold chain logistics, and is expanding into coastal shipping and inland waterway transport to provide seamless, end-to-end solutions for domestic and international cargo movement.
Written by Sridhar J
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