Divestment deferral making India's CONCOR 'less attractive' for peers, says Kotak

Container of India

24/06/2024 09:02

** Shares of Container Corp of India (CONCOR)  CCRI.NS  down
3.3% after falling as much as 4.7% earlier in the day 
    ** State-owned logistics co extends losses for the fourth
straight session; slide after report India govt shelved stake
sale in co 
    ** "Every year of deferral and loss of the company's market
share would make it less attractive for peers," says brokerage
Kotak
    ** Adds CCRI's market share in rail fell to 58% in FY24 vs
72% in FY19 
    ** Expectations of "a sharp U-turn" on market share appears
unwarranted as CCRI continues to charge a premium vs peer
Gateway Rail Freight Pvt Ltd - note   
    ** Brokerage retains its "sell" rating, PT 740 rupees 
    ** CCRI, on an average, rated "hold" with median PT of 1,056
rupees - LSEG data
    ** YTD stock has gained ~23% 

 (Reporting by Hritam Mukherjee in Bengaluru)
 ((Hritam.Mukherjee@thomsonreuters.com;))