Short term trading Idea of the month: Container Corporation of India Ltd (CONCOR)

 

Container corporation of India

In this article we will try to speak on short term trading ideas or swing trade, this month we have Container Corporation of India Ltd (CONCOR) in our radar.

Container Corporation of India Limited is engaged in transportation of containers and handling of containers. The Company is also engaged in the operation of logistics facilities, container freight stations and private freight terminals.

Currently CONCOR is trading at it 52 weeks high and lifetime high price.

Current CMP is 752.7 and today 09^th September 2022 it gave 2.79% up move and it touched 772 in the first hour and later consolidated.

Keep CONCOR in your radar as it was moving in a range for several months now, it would be good for swing trading as well.

 

CONCOR chart in Daily time frame

From the chart you can see that if we break 775 price, we can see fresh up move and target for healthy 10-12% with few weeks. Also, we can see huge volumes in recent times for the stock as highlighted.

At the lower side we can accumulate at 660-675 range and at 550-575 range if at all we see it there.

Whenever stock reaches all time high, we might be tempted to short it but in reality stock don’t change trend abruptly and keep making new all-time highs.

Coming to fundamentals…

CONCOR have P/E ratio of 42.28 which is not too high.

Container Corporation of India’s (CCRI’s) revenues grew 9.4 per cent year-on-year to ₹1,980 crore.

Increase in rail haulage charges on account of reduction in exemption of haulage charges for empty containers to 15 per cent from earlier 25 per cent was effective from May 2022.

The Union Cabinet on Wednesday lowered the railway land license fee to 1.5% from 6% for certain usages. The lease period has also been increased to up to 35 years from presently 5 years.

This decision will speed up the sale of the Centre's stake in Container Corporation of India. 

We are positive on CCRI’s prospects and believe that it is best positioned to capitalize on favorable infrastructure-related tailwinds. We remain positive on the structural growth story considering continual market share gains in domestic segment.