Container Corporation of India share price gained in trade today after HSBC upgraded the stock to buy from reduce and raised its target price by 50% to Rs 675 from Rs 337 per share. HSBC said privatisation of the PSU was gathering momentum which led the brokerage to upgrade the large cap stock. Container Corporation share price rose up to 3.12% at Rs 597.60 on BSE.
Container Corporation share price closed 2.61% or 15 points higher at Rs 594.60 compared to the previous close of Rs 579.50 on BSE. The stock has gained 5.64% in last two days.
Brokerage Citi also gave a buy rating on the stock citing the proposed stake sale by the government in PSU. CITI gave a target price of Rs 621 on its potential to benefit from DFC commissioning, large market share & net cash situation in the balance sheet. The firm's board will meet on October 30 to consider and approve unaudited financial results for the September quarter.
The government on September 30 cleared disinvestment in five Public Sector Undertakings (PSUs). This is likely to bring in around Rs 60,000 crore which accounts for nearly 60 per cent of Rs 1.05 lakh crore budgeted from the strategic stake sales in PSUs this financial year.
The move will also help the government keep its fiscal deficit in check. Proceeds from disinvestment in five PSUs namely, Bharat Petroleum Corporation (BPCL), Shipping Corporation of India (SCI), Concor, North Eastern Electric Power Corporation (NEEPCO), and THDC would aid the Centre contain its fiscal deficit amid low tax revenues and a Rs 1.45 lakh crore burden on the exchequer on account of corporate tax cut.