Volume worries to keep Container Corporation stock under pressure

Purchase of land from railways and delay in divestment add to uncertainty

The Container Corporation (Concor) stock gained 4.6 per cent on Wednesday, after the firm indicated it is surrendering some terminals to the Railways, keeping commercial and business viability considerations in mind.

The 15 terminals operated by the firm on land leased from the Railways contributed Rs 278 crore to its FY19 turnover. Besides this, concessional rates on transport of empty containers, market share gains, and lower impact on import traffic are other positives.

An analyst at a foreign brokerage believes the company, given its balance sheet and debt-free status, could gain market share from other rail operators as well as