CONCOR shares set for 27% upside despite weak Q1 expectations, says Jefferies 

Shares of Container Corporation of India Ltd (CONCOR) are set for a 27% upside, believes global brokerage Jefferies, which has reiterated its positive stance on the PSU firm. However, it expects a weak June quarter for the government firm. Container Corporation of India is premier multi-modal logistics provider in India, primarily facilitating the transportation of cargo by rail and road, as well as managing ports, air cargo complexes, and cold chains.

Meanwhile, the brokerage assigned a 'buy' rating on the stock with a target price of Rs 600 per share, an upside of over 27% from Friday's closing price of Rs 471.75. 

CONCOR shares closed 0.51% higher at Rs 473.95 on Monday. Market cap of the firm stood at Rs 36,096 crore. 

The brokerage says the stock has underperformed the Nifty by nearly 50% since June 2024, hit by weak growth in the container rail industry and the lack of progress on the government's divestment plans.

The brokerage believes much of the negative sentiment is already discounted in the stock price. 

CONCOR currently trades at a valuation that is one standard deviation below its historical average, with limited benefits from the Western Dedicated Freight Corridor (WDFC)-Jawaharlal Nehru Port connectivity factored into current valuations.

The brokerage expects the June 2026 quarter to remain challenging for CONCOR, citing a broader slowdown across the logistics sector. According to its analysis, container volumes handled by Indian Railways slipped 1% year-on-year in May 2026 despite healthy activity at ports. The trend has weakened further in June, with volumes currently down 6% from the same period last year, partly due to disruptions arising from geopolitical tensions in West Asia.

Despite the near-term headwinds, the brokerage remains optimistic about the medium-term outlook. It highlighted that India's port container traffic expanded 8% year-on-year in May, while container-linked export and import trade registered a robust 20% growth, indicating that underlying demand remains strong even amid global uncertainties.

Jefferies believes that a sustained improvement in trade activity and a rebound in container volumes could emerge as important growth drivers for the stock in the coming quarters.