A day after the Union Cabinet approved the policy on leasing of railways land for Gati Shakti terminals on Wednesday, brokerage houses have been bullish on logistic solutions provider stock—Container Corporation of India (Concor). Reacting to the development, the counter hit 52-week high on Wednesday and was trading higher by around three per cent on Thursday. As per the policy, the cabinet has slashed the annual Land Licence Fee (LLF) to 1.5% (earlier 6%) of market value of land while also extending the term for up to a period of 35 years (earlier 5 years).  

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Talking about how does this move helps the scrip, JM Financial said though the policy is aimed at the Gati Shakti terminal, however, it provides Concor and other players the option to adopt/ switch to this new regime through a competitive bidding process. 

"Although rules/ conditions are yet to be spelled out clearly, as per Gati Shakti Policy Cargo terminal policy, if Concor is to take the option of moving to the new regime, it is likely to have to win the terminal back basis revenue share model via a competitive bidding process," it said.  

JM Financial maintained a buy rating on Concor with a target price of Rs 860.  

Here is how global brokerage houses rated the stock and how much target they see in Concor.  

Nomura on CONCOR (CMP: 727)  

The brokerage house Upgraded the counter to Buy from Neutral and gave most aggressive target of Rs 918 previously Rs 775.  

Credit Suisse on CONCOR (CMP: 727)   

Maintain Outperform, Target 700   

JP Morgan on CONCOR (CMP: 727)  

Maintain Overweight, Target 780  

Jefferies on CONCOR (CMP: 727)  

Maintain Buy, Target 850  

Citi on CONCOR (CMP: 727)  

Maintain Buy, Target 735 

Meanwhile, the policy approved by the cabinet provides for long-term leasing of railway land for Gati Shakti cargo related activities for a period of up to 35 years (earlier 5 years) at 1.5% (earlier 6%) of market value of land per annum. There exists an annual escalation clause of 6% 

The government has been trying to divest ConCor since 2019-20. In this regard, the cabinet has also approved the around 31 per cent stake sale in ConCor in November 2019, along with the transfer of management control, however, the delay was mainly due to new land leasing fee policy.