Navratna railway stock in focus: The shares of Container Corporation of India Ltd, a Navratna Public Sector Undertaking (PSU) under the Ministry of Railways, Government of India, fell by up to 5% on May 26 after posting weak Q4 results.
The company released its Q4FY26 results after market hours on Monday. It reported a weak Q4 FY26 performance as revenue declined 1% YoY to Rs 2,263 crore, while profit dropped 12.4% to Rs 263 crore.
Despite the weak Q4 results, the brokerages, Nuvama Research, Elara Capital and MOSL are bullish on Navratna PSU stock. Let's explore the reasons and also check the latest target price.
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Elara Capital on Container Corporation of India
The brokerage firm, Elara Capital, maintains an accumulate rating. However, the firm cut the target price to Rs 520 from Rs 599. Here's why:
- The company's Q4 was impacted by geopolitical disruptions and weak domestic cargo movement
- Domestic profitability is hurt by weak Morbi tile traffic and higher empty running costs
- EXIM business remained relatively stable with healthy import growth
- WDFC connectivity to JNPT from June 2026 is expected to support a modal shift from road to rail
- Management guides for 8% EXIM growth and 15% domestic growth in FY27
- Brokerage lowers FY27 and FY28 earnings estimates by 12.5% and 13%, respectively
- Maintains a conservative stance on growth and profitability recovery.
Nuvama Research on Container Corporation of India
The brokerage firm, Nuvama Research, upgraded its rating to buy from hold and also revised its target price. The firm has cut the target price to Rs 570 from Rs 600.
- The company reported a weak performance due to higher empty container movement, while its market share remained stable on a QoQ basis.
- Export-import activity is expected to stay weak in the near term.
- However, the Western Dedicated Freight Corridor is likely to provide a long-term structural tailwind for the business.
- The company remains well placed to benefit from this structural change despite near-term challenges.
- Brokerage has cut its FY27/FY28 EBITDA estimates by 6-7% owing to a weaker near-term outlook.
MOSL on Container Corp
Motilal Oswal Financial Services maintains a buy call with a TP of Rs 560 (earlier 600). Here's why:
- The company's weak 4Q realisations and margins remain under pressure
- Cut EBITDA estimates for FY27 and FY28 by 5-7%
- Remain watchful of how DFC connectivity translates to incremental volume growth
- Expect its revenue/EBITDA to clock a CAGR of 9%/12% over FY26-FY28
Concor Q4 results
Concor reported a weak Q4 FY26 performance as revenue declined 1% YoY to Rs 2,263 crore, while profit dropped 12.4% to Rs 263 crore. EBITDA also fell 2.8% YoY to Rs 428 crore, and EBITDA margin narrowed by 30 bps to 18.9%, indicating pressure on operational profitability.
Concor dividend 2026
Meanwhile, the board declared a final dividend of Rs 1 per share.
The Board has declared a Final Dividend of Rs 1.00 (20%) per equity share of face value of Rs 5 / each for the year 2025-26. This Final Dividend is in addition to Interim Dividend @32% (i.e. Rs 1.60 per share of Rs 5.00 each), 211d Interim Dividend @52% (i.e. Rs 2.60 per share of Rs.5.00 each) and 3rd Interim Dividend @68% (i.e. Rs 3.40 per share of Rs.5.00 each) already paid during the year, the company informed in an exchange filing.
Concor share price today
At the time of writing this report (9:26 AM), the shares of Container Corporation of India were trading 0.04 per cent lower at Rs 475.05, compared to the previous closing price of Rs 476.10.
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(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
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