1:4 Bonus Issue Record Date On July 4: Best Bonus Railway Stock CONCOR To Turn Ex-Bonus; Should You Buy?

Container Corporation of India (Concor) will be in focus on July 4th as the railway stock will turn ex-bonus for 1:4 ratio. Concor is among the best bonus-issuing railway companies. Ahead of the bonus, ConCor is currently around the Rs 745 price level and has a 10.45% return on equity. Brokerage Motilal Oswal has recommended BUY with a Rs 980 target price.

Concor Share Price:

On July 3rd, Concor stock stood at Rs 745.45 apiece, marginally up on BSE, with a market valuation of Rs 45,419.85 crore. The stock price will adjust to bonus issue ratio on July 4th, meaning it will become cheaper for both new and existing investors.

Currently, Concur's 52-week high and low is at Rs 1,075.95 apiece and Rs 601.65 apiece respectively. While its upper circuit and lower circuit limit is at Rs 655.95 apiece and Rs 536.75 apiece respectively. These price levels will also be adjusted.

YTD, Concor stock is down by 4.33%.

Concur Bonus Issue:

This railway midcap company has declared a 1:4 bonus issue. For the same, the record date and ex-bonus date are July 4th. Eligible shareholders will get 01 (One) new fully paid-up equity share of Rs.5/- each for every 04 (Four) existing fully paid-up equity shares of Rs.5/- each.

Concor has a strong history of delivering bonus issues to its investors. The first ever bonus issue by Concor was of 1:1 in April 2008, followed by a 1:2 bonus payout in September 2013. Concor has also delivered 1:4 bonus issues each in April 2017 and February 2019. The upcoming bonus issue will be Concur's fifth reward in that category.

Calculate Your Bonus Gains:

Bonus issues are free shares that listed companies reward to eligible shareholders. One of the key advantages of a bonus is compounding returns, if you have held the stock throughout each bonus.

For example: You bought 1,000 shares of Concur before its first bonus issue on April 16, 2008. Since then, here's how each bonus share by Concur has multiplied your shareholding:

1. 1:1 Bonus Ratio (April 2008): 1000 + 1000 bonus shares (1000x1/1) = 2000 shares

2. 1:2 Bonus Ratio (September 2013): 2000 + 1000 bonus shares (2000X1/2) = 3000 shares

3. 1:4 Bonus Ratio (April 2017): 3000 + 750 bonus shares (3000x1/4) = 3750 shares

4. 1:4 Bonus Ratio (February 2019): 3750 + 937.5 bonus shares (3750 x 1/4) = 4,687.5 shares.

5. 1:4 Bonus Ratio (July 2025): 4687.5 shares + 1,171.875 bonus shares (4687.5x1/4) = 5,859.375 shares.

It is worth noting that this is just an example, and the stock price level is adjusted to the bonus ratio as the number of shares in the portfolio increases. Additionally, gains vary from investor to investor, depending on their eligible shareholding in Concor.

BUY Concor Stock?

CCRI holds a dominant position, with a market share of ~58% at JNPT and a 56% pan-India share as of March 2025, complemented by a significant presence at Mundra (37.7%) and Pipavav (48.4%) ports, according to Motilal Oswal data.

Also, CCRI achieved a record 5.1m TEUs in FY25 (up 8% YoY), with domestic volumes rising 12% and EXIM volumes growing 7% despite global trade challenges. For FY26, CCRI targets total volume growth of 13% (10% EXIM, 20% domestic), driven by new services, high-margin sectors like FMCG, and DFC benefits.

With FY25 capex of INR8.1b and FY26 capex target of INR8.6b, CCRI aims to expand its fleet to 500+ rakes (from 388 currently) and 70,000 containers (from 53,000+) by 2028 at 100 terminals. Four new terminals in FY26 will unlock additional freight corridors. With total container volumes at Indian ports estimated at 23m TEUs annually, CCRI's extensive network and infrastructure investments position it well to capture incremental share. The full DFC commissioning, increasing adoption of double-stacked rakes, strategic focus on first-mile last-mile (FMLM) integration, and customer-centric innovations should drive volume growth and margin expansion, as per the note of Motilal Oswal.

On the valuation, the note said, "We expect a 10% CAGR in blended volumes and EBITDA margin of 23-24% over FY25-27. The stock trades at ~16x FY27E EV/EBITDA. Reiterate BUY with a revised TP of INR980 (based on 20x EV/EBITDA on FY27E)."

On July 1st, Concor took a significant step forward in transforming cement logistics in India by introducing specialized tank containers for the first time to facilitate the transportation of bulk cement in loose form. These tank containers are designed to support the cement industry by enabling efficient, safe, and eco-friendly bulk movement of cement through the rail network, thereby significantly reducing the dependency on conventional bagged transport. This not only enhances the operational efficiency of cement companies but also aligns with India's goal of promoting green and multimodal logistics.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.

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