Broker’s call: Concor (Add) – The HinduBusinessLine

Target: ₹540

CMP: ₹517

Container Corporation’s (Concor) first long haul double stack container movement from JNPT to Vadodara (422 kms) took place on August 21 for a load of 360 TEUs, and is a key milestone for the company in our view. It demonstrates that the WDFC (Western Dedicated Freight Corridor) is now operational.

Moreover, it also shows that longer double stacking is not just a theoretical possibility, but a practical reality now.

Increased long haul double stack has the potential to reduce congestion and lead to better asset utilisation (current single stack operations are 90TEUs), which could improve rail competitiveness against roads. It also cuts down the number of train moves for the same load, reducing track congestion and cutting time o fdeliveries.

The current West Asia crisis has caused inflation in truck freight rates (led by diesel price increases), which, in addition to WDFC operations, could lead to some rail container volume uptick post monsoon (Q3FY27).

We value the CCRI’s core business using a DCF methodology, yielding a TP of ₹540, and maintain Add. We believe the risk-reward is fairly justified. The WDFC connection and near-term rail modal share gains due to higher truck freights (driven in part by rising diesel prices) could support a rise in share prices. However, at that stage, the risk-reward may again turn adverse as was the case before the stock’s underperformance hitherto.

Published on August 24, 2026