A railway stock listed as BSE 200 is trading below Rs 750 levels. This railway stock is going to be in focus during the month of June for its upcoming double rewards namely 40% dividend and 1:4 bonus issuance. Its neither IRFC or RVNL, the two largest railway stock of India. But instead a midcap railway and logistics solutions provider, Container Corporation of India (Concor).
Concor Share Price:
After market hours of May 26th, Concor stock price stood at Rs 742.20 apiece on BSE, up by 3% with market cap of Rs 45,221.83 crore. Concor shares have grown by more than 8% in a month, although, YTD performance is down by 5%.
However, all-time gains in Concor stock is by 7,631.25% so far. The stock was below Rs 10 on February 2, 1996. At present, the stock's 52-week high and low is at Rs 1,193.95 apiece and Rs 601.65 apiece respectively. Its return on equity (ROE) is at 10.39%, which is stable.
Concor Bonus Issue:
Concor is going to reward investors with its first bonus issue in post-pandemic era. It is one of the best bonus issuing stock in railway basket.
The company has declared issuance of bonus equity shares in the ratio of 1:4, meaning, 1 free share with face value of Rs 5 each for every 4 existing shares with face value of Rs 5 each.
The issuance of Bonus Shares is subject to the approval of Shareholders (through Postal Ballot) and other requisite approvals as may be applicable. The Company will inform the "Record Date" for determining the entitlement of the Shareholders to receive Bonus Shares in due course, it said.
As much as 15,23,23,587 equity shares of Rs.5/- each amounting to Rs.76,16,17,935 will be rewarded as bonus issue. Concor plans to complete its bonus issuance action within 2 months from the date of Board approval i.e. on or before July 21, 2025.
Prior to this, Concor has rewarded three bonus shares. The last bonus issue was of 1:4 in February 2019, followed by another 1:4 bonus shares in April 2017. The first bonus issue by Concor was 1:2 in September 2013.
ConCor Dividend:
Additionally, the railway giant declared a Final Dividend of Rs.2.00 (40%) per equity share of face value of Rs.5 / each for the year 2024-25.
The upcoming Final Dividend is in addition to the Interim Dividend of 40% (i.e. Rs.2.00 per share of Rs.5.00 each), 2nd Interim Dividend of 65% (i.e. Rs.3.25 per share of Rs.5.00 each) and 3rd Interim Dividend of 85% (i.e. Rs.4.25 per share of Rs.5.00 each) already paid during the year.
The above final dividend of Rs.2.00 (40%) per equity share is subject to the approval of shareholders at the ensuing Thirty-Seventh Annual General Meeting of the Company.
The record date to determine the shareholders who will be eligible to receive the final dividend will be June 6, 2025 (Friday). The payment of the final dividend, if approved by the Shareholders will be completed within thirty days from the date of the Annual General Meeting.
Since September 2003, Concor has given up to 51 dividends, as per Trendlyne data. In the last 12 months, the company's dividend payout was to the tune of Rs 12 per share. Its current dividend yield is about 1.62%.
Concor Share Price Recommendation:
The consensus recommendation from 17 analysts for Container Corporation of India Ltd. is HOLD, as per Trendlyne data.
Analyst at PL Capital has recommended BUY with target price of Rs 750 per share.
About Concor:
Concor is an Indian public sector undertaking (PSU) with Navratna status. The company is engaged in transportation and handling of containers. Founded in March 1988, CONCOR commenced operations in November 1989 taking over an existing network of seven inland container depots (ICDs) from Indian Railways. At present, the company has three core businesses such as cargo carrier; terminal operator, warehouse operator & MMLP operation.
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