40% Dividend: Navratna Logistics Stock Gains On Ex-Dividend Day, Jefferies Upgrades TP

Shares of Navratna public sector undertaking, Container Corporation of India (CONCOR) are trading ex-dividend today for final dividend of Rs 2.00 per equity share of the face value of Rs 5/- each. Current market price of Container Corporation of India share is Rs 734.55 per share with intraday gain of 2.35%. Earlier, Container Corporation announced an interim dividend of Rs 2.00 per equity share with ex-dividend date fixed as August 18, 2023. Meanwhile, brokerage firm Jefferies has upgraded target price of Container Corporation share with Rs 825 per share. Check details below:

Container Corporation Recommended Final Dividend: According to the BSE filing of the PSU Navratna company, three interim dividends totaling to 180% (Rs.9/- per share) on equity share of Rs.5/- each were paid during the year and a final dividend of 40% (Rs.2/- per share) has been recommended. Therefore, the total dividend payment in FY 2022-23 would be Rs.670.22 Crores which is 57.33% of the net profit for the year.

Container Corporation Stock Outlook & Return: Current market price of Container Corporation share is Rs 733.40 per share on BSE. Its 52-week high price is Rs 828.50 per share and 52-week low price is Rs 555.00 per share, respectively. Its market capitalisation is Rs 44,685.65 crore. Container Corporation shares rallied 12% in last 1-month, gained 10% in last 3-months, fell 0.50% in last 1-year, soared 89% in last 3-years, and rose 50% in last 5-years. In last 10-years, Container Corporation witnessed a gain of 229%.

Container Corporation Financials: The state-owned company announced 17% dip in net profit to Rs 246 crore for the first quarter ended June 30, 2023 for the FY 2024 as against the net profit declared at Rs 297 crore in corresponding period in the preceding fiscal. The company's revenue declined 3.6% at Rs 1,922 crore, according to its exchange filing. Concor stated its export-import (EXIM) and domestic segments recorded 5.3% and 0.3% decline, respectively. The company's total expenses soared 1% at Rs 1,685 crore as rail freight costs which account for nearly two-thirds of the expenses witnessed a fall.

Jefferies On Container Corporation: Leading brokerage firm Jefferies raised price target for Container Corporation to Rs 825 and expects return of 12.24%. According to Jeferried, Concor will maintain its profitability and market share position and regain lost market share as its dedicated freight network presence pays off. According to the analyst, Container Corporation's volumes should see 15% CAGR in FY23-26E with DFC. Normalised rail operations, road to rail shift and market share/margin recovery should lead to stock upside. The key downside risk is indefinite delay in DFC; and Railways bringing up LLF again.

Container Corporation About: CONCOR is committed to providing responsive, cost effective, efficient and reliable logistics solution to its customers. It strives to be the first choice for its customers. CONCOR is a customer focused, performance driven, result oriented organization, focused on providing value for money to its customers, according to its official website.

Disclaimer

The stock has been picked from the brokerage report of Jefferies. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.