Concor's growth route shifts as demand dips
Business Standard|October 17, 2024
Weak exim volumes, competitive pressures add to logistics firm's demand woes
RAM PRASAD SAHU
Concor's growth route shifts as demand dips
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) and 15 per cent growth in the domestic segment. The company has maintained guidance of 18 per cent volume growth for FY25, with 15 per cent growth in exim and a 25 per cent rise in domestic traffic.

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