ConCor share price surges over 13% in last 3-day, hits new 52-week high today – Check what brokerages say about stick

Container Corporation of India on Tuesday hits a new 52-week high to Rs 664.5 per share on the BSE Intraday, the shares of the company have been rallying for the second straight session by near five per cent intraday amid robust revenue performance in the fourth quarter of fiscal 2020-2021. 

The company on Friday reported its total income in the March-ended quarter of FY21 rose to Rs 2,029.91 crore as compared to Rs 1,659 crore a year ago in the same quarter. Whereas, its consolidated net profit nosedived to 92 per cent at Rs 25 crore in Q4 FY21 as against Rs 316.5 crore Q4 FY20. 

ConCor in the last three days has surged by over 13 per cent from 586.5 per share to 664.5 per share as its day’s high and all-time high today. At around 2:15 pm, the stock soared around four per cent intraday to Rs 660 per share as against Rs 634.5 per share previous close. 

The company on Monday has given in-principle approval for exploring the possibility of borrowings an amount not exceeding Rs 3500 crore either from banks, institutions towards executing long term lease agreements for Railway Lands, it said in a filing to the exchanges. 

Maintaining an Outperform call on ConCor, Credit Suisse raising a target at Rs 750 per share, said, the company would borrow, solving its capital allocation problem, it paves the way for strategic divestment and it also gets lease settlement on its own terms. 

The state-owned company, ConCor is supposed to be divested this year along with other PSUs (Public Sector Units) to meet the government’s disinvestment target of Rs 1.75 lakh crore. 

On the other hand, Goldman Sachs has maintained a Neutral call on CONCOR, setting its target at Rs 610 per share. It maintained a Neutral stance, as many unknowns before clarity on whether the asset will be sold and operational guidance in the near-term, not much encouraging of the company.