Container Corporation (Concor) has been creeping up unobtrusively on the bourses. Some of the foreign institutional investors have shown bullishness on the counter.
A foreign brokerage has estimated that the volumes will show a growth of 15 per cent during the next two years due to the growing external trade and a rise in value-added goods in the trade.
Concor has the biggest advantage as it is the sole domestic transporter of containerised goods by rail. There is a steady rise of containerisation in India and this is what will drive its growth.
New wagons will raise volume growth and offset price pressure. Relative valuations remain attractive, while the dividend yield is at 5 per cent.
Wagon additions during the next fiscal will also help to address growth constraints which has been witnessed in recent years, especially in the underpenetrated domestic segment.
At a time when competition is increasing in line with improving road infrastructure, Concor
