Brokerage Firm cuts target price for CONCOR stock, maintains sell recommendation

Goldman Sachs has reduced its price target for shares of Container Corporation of India (CONCOR), a state-run company, from Rs 810 to Rs 710. The firm has maintained its "sell" recommendation for the stock. This revised price target suggests a potential downside of 17% from the closing levels on Wednesday.

Goldman Sachs noted that CONCOR's earnings face further risk due to weak growth in rail container traffic and concerns about market share amid rising competition. They anticipate that the cycle of downgrading CONCOR's earnings is likely to continue, indicating further downside potential for the stock. Shares of CONCOR have already declined by 27% from their recent peak of Rs 1,180.

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CONCOR's first-half volume growth of 6% year-on-year was weak, with a current run-rate of rail container traffic for October and November being similar, Goldman Sachs sees the company's guidance to be "ambitious."

CONCOR shares are currently trading at a financial year 2026 price-to-earnings multiple of 34 times and 20.5 times financial year 2026 Enterprise Value to EBITDA (EV/EBITDA) compared to its long-term median multiple of 18.5 times.

Out of the 24 analysts that have coverage on CONCOR, 13 of them have a "buy" recommendation on the stock, five say "hold", while six of them have a "sell" rating on the state-run company.

Shares of CONCOR ended 0.5% higher on Wednesday at Rs 856. The stock has been flat in 2024, currently down 0.6%.

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