{"id":936,"date":"2010-05-12T18:13:33","date_gmt":"2010-05-12T12:43:33","guid":{"rendered":"https:\/\/www.moneyworks4me.com\/investmentshastra\/?page_id=936"},"modified":"2020-10-22T13:03:31","modified_gmt":"2020-10-22T07:33:31","slug":"company-shastra-2","status":"publish","type":"page","link":"https:\/\/www.moneyworks4me.com\/investmentshastra\/company-shastra-2\/","title":{"rendered":"Company Shastra"},"content":{"rendered":"<p><span style=\"color: #ffffff;\">&#8211;<\/span><\/p>\n<h2>Container Corporation of India Ltd. (Concor) \u2013 The One-Stop Rail Logistics Solution in India<\/h2>\n<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-937\" title=\"financials\" src=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2010\/05\/financials.png\" alt=\"\" width=\"882\" height=\"502\" srcset=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2010\/05\/financials.png 882w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2010\/05\/financials-300x170.png 300w\" sizes=\"auto, (max-width: 882px) 100vw, 882px\" \/><\/p>\n<h2><strong>Concor\u2019s 10 YEAR X-RAY*:\u00a0<span style=\"color: #00cc33;\">Green (Very Good) <\/span><\/strong><\/h2>\n<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-938 aligncenter\" title=\"5 =concor (7)\" src=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2010\/05\/5-concor-7.png\" alt=\"\" width=\"643\" height=\"134\" srcset=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2010\/05\/5-concor-7.png 643w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2010\/05\/5-concor-7-300x62.png 300w\" sizes=\"auto, (max-width: 643px) 100vw, 643px\" \/><br \/>\n<strong>(* 10 YEAR X-RAY shows the financial performance of a company in the last 10 years.) <\/strong><\/p>\n<h2>Concor, In Brief<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-939 aligncenter\" title=\"chart\" src=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2010\/05\/chart.png\" alt=\"\" width=\"265\" height=\"259\" srcset=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2010\/05\/chart.png 454w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2010\/05\/chart-300x293.png 300w\" sizes=\"auto, (max-width: 265px) 100vw, 265px\" \/>Concor is India\u2019s lowest-cost service provider in the Rail Container Segment, with a 90% market share. The Government of India has a 63% stake in the company. Concor provides inland transport by rail for containers. It also provides multi-modal logistics services for Exim (Import-Export) &amp; Domestic Trade. It has the largest infrastructure network \u2013 59 container terminals (50 Exim + 9 Domestic) and 225 rakes. <strong>It is the one-stop rail logistics solution company in India.<\/strong><span style=\"color: #ffffff;\">&#8211;<\/span><\/p>\n<h2>What does Concor\u2019s Past Say?<\/h2>\n<p style=\"text-align: left;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-941 alignright\" title=\"concor chart _7(fin)\" src=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2010\/05\/concor-chart-_7fin.png\" alt=\"\" width=\"640\" height=\"648\" srcset=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2010\/05\/concor-chart-_7fin.png 640w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2010\/05\/concor-chart-_7fin-296x300.png 296w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/>Conor performed robustly in the last 10 years. It is only in the last 2 years, that its Net Sales &amp; EPS growth rates have slowed down due to the global economic recession. Hence, the 10 YEAR X-RAY of Container Corporation of India is <span style=\"color: #00cc33;\"><strong>Green (Very Good)<\/strong><\/span><\/p>\n<h2>What is Concor\u2019s Short Term Outlook?<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-943\" title=\"march quarter(9)\" src=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2010\/05\/march-quarter9.png\" alt=\"\" width=\"303\" height=\"156\" srcset=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2010\/05\/march-quarter9.png 303w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2010\/05\/march-quarter9-300x154.png 300w\" sizes=\"auto, (max-width: 303px) 100vw, 303px\" \/><\/p>\n<ul>\n<li style=\"text-align: justify;\"><strong>Flat Performance<\/strong> in the last 4 quarters <strong>due to subdued sales from the High-Margin Exim Segment<\/strong>, somewhat compensated by the <strong>Growth in Domestic Traffic<\/strong><\/li>\n<li style=\"text-align: justify;\"><strong>Imports on recovery track<\/strong>, but <strong>exports<\/strong> are <strong>still lagging behind<\/strong><\/li>\n<li style=\"text-align: justify;\">The <strong>imbalance<\/strong> between exports &amp; imports has led to <strong>running of empty trains. This has resulted in reduced margins as the company is finding it difficult to pass on this increased cost to importers<\/strong><\/li>\n<li style=\"text-align: justify;\">Concor plans to spend Rs. 5 bn. in FY11, to add wagons and set up logistics parks. The capex will be funded through internal accruals<\/li>\n<li style=\"text-align: justify;\">Against Concor expections to end FY10 with a flat or marginal rise in profit, it <strong>reported a marginal drop in profits. The sales growth at 8% was as per expectations<\/strong>. (Unaudited)<\/li>\n<li style=\"text-align: justify;\">It is expected that it will register <strong>similar growth rates <\/strong>in the next few quarters. The Company has estimated a <strong>5-6% rise in profit and a 8-9% growth in sales for FY11<\/strong><\/li>\n<li style=\"text-align: justify;\">Hence, we can expect the short term future of Concor to be <strong><span style=\"color: #ff0000;\">Red (Not Good)<\/span><\/strong><\/li>\n<\/ul>\n<h2><strong>What is Concor\u2019s Long Term Outlook?<\/strong><\/h2>\n<p><strong>Growth Drivers: <\/strong><br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-1006\" title=\"rack-pinion_30\" src=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2010\/05\/rack-pinion_301.png\" alt=\"\" width=\"820\" height=\"189\" srcset=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2010\/05\/rack-pinion_301.png 820w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2010\/05\/rack-pinion_301-300x69.png 300w\" sizes=\"auto, (max-width: 820px) 100vw, 820px\" \/><\/p>\n<ul>\n<li style=\"text-align: justify;\">Market leader with a <strong>90% market share in a growing industry<\/strong><\/li>\n<li style=\"text-align: justify;\">Characteristics like <strong>capital intensity, high initial license fees, support from the Government, improved railways infrastructure &amp; Concor\u2019s superior infrastructure <\/strong>will help Concor sustain its position as a market leader<\/li>\n<li style=\"text-align: justify;\"><strong>The expected growth in India\u2019s international trade will be a revenue driver. Domestic market<\/strong> is a great area of opportunity for Concor. Compared to penetration levels of 70-80% in developed countries, India\u2019s domestic container transport accounts for only 20%<\/li>\n<li style=\"text-align: justify;\"><strong>High-Margin EXIM Segment <\/strong>is a<strong> revenue driver<\/strong><\/li>\n<li style=\"text-align: justify;\">It is a <strong>single-window facility,<\/strong> coordinating with all the different agencies and services involved in the containerized cargo trade. Concor offers a <strong>high degree of customization, designed to provide the most cost-effective combination of road and rail<\/strong><\/li>\n<\/ul>\n<p><strong>Concerns:<\/strong><\/p>\n<p style=\"text-align: justify;\"><strong>Concor\u2019s real competition is Road Transport which has a 70% share of the total freight<\/strong>. However, over long distances, \u00a0rail containerized transport works out cheaper than road. Concor\u2019s ability to manage the end-to-end logistics costs will decide whether it maintains or grows its market share, or loses share to road transport. Towards this, Concor will rely heavily on The Indian Railways<\/p>\n<p style=\"text-align: justify;\">The <strong>15 private players<\/strong> (2009) with a <strong>total market share of 10%<\/strong> pose a threat to Concor. We can expect that Concor will <strong>lose another 10-15% share in the next few years<\/strong><\/p>\n<p style=\"text-align: justify;\">Looking at all of the above, we can expect that Concor will grow with the growth in India\u2019s international trade and earn a share of the domestic container freight also.\u00a0 Its investments in infrastructure could ensure that it maintains its position vis-a-vis road transport. However, it will also start facing pressure from private players. Hence, we can expect the long term future prospects to be <span style=\"color: #ff9900;\"><strong>Orange (Somewhat Good)<\/strong><\/span><\/p>\n<p><strong>Conclusion<\/strong><\/p>\n<p style=\"text-align: justify;\">Concor is in a position to safeguard its position as a market leader. Factors like superior infrastructure network, expected growth in the High-Margin Exim Segment and Government support will help it sustain its position in the future. It faces the threat of losing share to road transport &amp; private players. Concor\u2019s ability to repeat its past performance will depend on its strength &amp; strategies to fight competition in the future<\/p>\n<p>If you liked what you read and would like to put it in to practice <a href=\"https:\/\/www.moneyworks4me.com\/registration\/\">Register at MoneyWorks4me.com<\/a>. 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And more<\/b><b>\u2026.<\/b><b>Puchho<\/b> <b>Befikar<\/b><\/span><\/p>\n<div class=\"puchhoBefikarIcon\"><img loading=\"lazy\" decoding=\"async\" class=\"\" src=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2018\/05\/puchho-befikar-logo.png\" width=\"59\" height=\"46\" alt=\"\" \/><\/div>\n<p><b><i>Kyunki<\/i><\/b> <b><i>yeh<\/i><\/b> <b><i>paise<\/i><\/b> <b><i>ka<\/i><\/b> <b><i>mamala<\/i><\/b> <b><i>hai<br \/>\n<\/i><\/b><a href=\"https:\/\/www.moneyworks4me.com\/\" target=\"_blank\" rel=\"noopener\">Start Chat<\/a> | <a href=\"https:\/\/www.moneyworks4me.com\/\" target=\"_blank\" rel=\"noopener\">Request a Callback<\/a> | Call 020 6725 8333 | <a href=\"https:\/\/api.whatsapp.com\/send?phone=918055769463&amp;text=Need%20any%20help?\" target=\"_blank\" rel=\"noopener\">WhatsApp 8055769463<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>&#8211; (* 10 YEAR X-RAY shows the financial performance of a company in the last 10 years.) Concor is India\u2019s lowest-cost service provider in the Rail Container Segment, with a 90% market share.<\/p>\n","protected":false},"author":15,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"open","template":"","meta":{"footnotes":""},"class_list":["post-936","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/pages\/936","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/comments?post=936"}],"version-history":[{"count":0,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/pages\/936\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/media?parent=936"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}