The stock continues to hold firmly above its 14-day and 55-day EMAs despite recent selling pressures. The analyst sees this as a sign of resilience and potential uptick.
After weeks of selling pressure, Container Corporation of India (CONCOR) may finally be seeing a recovery, according to SEBI-registered analyst Deepak Pal.
The stock has shown encouraging signs of stability and recovery on both the weekly and daily charts. It continues to hold firmly above its 14-day and 55-day exponential moving averages (EMA), with the 14-day EMA acting as a strong support level during recent corrections, Pal noted.
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Despite a two-week decline following its fourth-quarter results, during which the stock faced consistent selling pressure after hitting a high of ₹814.45 on June 5, it managed to protect the key ₹725-₹729 support zone, the analyst observed.
Last week, CONCOR stock opened at ₹759, dipped to ₹725.50, touched a high of ₹767.45, and closed at ₹738.25. This week began with an opening at ₹737.90, a low of ₹729.35, and a close at ₹756.35, reflecting buying interest at lower levels and an attempt to recover from recent losses, Pal said.
At the time of writing, the stock was down 0.8% at ₹755.00.
If CONCOR continues to sustain above the crucial ₹725 support, it could potentially retest the ₹800 mark in the coming weeks, Pal added.
Considering the current technical setup and strengthening momentum, he suggests adopting a “buy on dip” approach, placing a stop-loss at ₹725. He believes the stock has the potential to climb towards ₹850 within the next two to three weeks.
Retail sentiment on Stocktwits shifted to ‘bullish’ from ‘neutral’ a week ago.
CONCOR delivered a stable performance in FY25, with revenue reaching ₹8,887 crore and net profit rising 3.35% to ₹1,288.8 crore, despite a slight dip in Q4 profit. The company has a low debt, over ₹10,000 crore in reserves, and steady cash flows.
The company maintained strong margins, offered a dividend of ₹11.50 per share, and proposed a 1:4 bonus issue. The Navaratna PSU has set July 4 as the record date for the eligibility of bonus allocation.
Key growth drivers include the Indian government’s potential privatization plan and a strategic focus on double-stack train operations, with management targeting a 25 - 30% rise in cargo volumes for FY25.
The stock has shed 4.2% year-to-date (YTD).
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