Concor's growth route detours as demand dips due to weak exim volumes

Competitive pressures add to logistics firm's demand woes

The stock of state-run logistics firm Container Corporation (Concor) of India has declined by 15 per cent since the beginning of August. Weak demand, lower handling and storage charges, and increased competition have been key headwinds, likely to weigh on the stock going forward. Some brokerages have also cut their estimates for 2024-25 (FY25) due to the ongoing demand slowdown.

The primary near-term concern is muted volumes, which will negatively impact the company’s performance in FY25. Volume in the first quarter of FY25 was up 6 per cent year-on-year, with 3.3 per cent growth in export-import (exim)