Concor is entering the phase of 13%+ traffic growth rate, similar to the FY03-08 period, substantially better than the no-growth phase of FY09-11. Key driver of stronger traffic growth is recent recovery in demand for manufactured goods from US/Europe. Concor, as a transporter of containerized cargo using India’s vast railway network, is also likely to benefit from the recent expansion of port capacities in Kerala, Gujarat, and Tamil Nadu.
Concor is investing Rs10bn during FY11-13e on eight new logistics parks.
Concor March-12 EPS is expected to be Rs 78. Stock can hit Rs 1350 in 12 months.
