When we talk about logistics sector in our country, the stock which comes to our mind as the undisputed leader of rail, air and water transport is Container Corporation of India (CONCOR).
Currently the stock is trading at Rs 438. Before initiating a bullish trade in this stock, let’s try to understand the technical as well as fundamental analysis of this stock.
Technical analysis-If you see carefully the stock has remained sideways since a very long time. It has been in a range of Rs 360 to Rs 650 since last 5 years. So basically, the stock gives an opportunity for smart investors to enter at lower levels and exit at higher levels later. Of course the stock made a low of around Rs 280 in March 2020 but that low was created due to COVID crash which our country had witnessed. Even the best stocks of the country fell heavily in that period. But CONCOR has started recovering now and it looks like it might not test the low of 280 again. So technically the stock is at a good setup as of now.
Fundamental analysis-The stock is the undisputed market leader with a market capitalization of more then Rs 25,000 crores. The sales of this company has been consistent since last many quarters (1500 crores and plus).The OPM of the stock has been maintained well over 20%.Stock has a healthy dividend payout of more then 30% since last few years. The stock has been virtually debt free giving a signal that it is not burdened under the interest costs. 95% of the shareholding of this company is with the Honorable Government of India, FIIs and DIIs like LIC. Only 5% is there with the retailers giving us a signal that the stock is in the safe hands of big people. So based on this analysis I would like to initiate a positional bullish trade in this stock with a target of Rs 650 and above in the coming few months.