Shares of state-run Container Corporation of India Ltd. rose the most in over eight months after the company announced the merger of its three its subsidiaries with itself.
The company is exploring the possibility to merge Concor Air Ltd., SIDCUL Concor Infra Company Ltd. and Punjab Logistics Infrastructure Ltd. with itself, it said in an exchange filing on Tuesday. It will float an e-tender to engage external management.
Shares jumped as much as 7.1%, the most since April to Rs 444.9 apiece on Wednesday. The stock has now gained for 11 straight days, it's longest rally since March 2014, aided by growth in rail freight traffic.
The rail freight traffic rose 8.66% over a year earlier in December to 118.29 million tonnes. The company now has the largest network of 59 terminals and four strategic tie-ups. It has also expanded to management of ports, air cargo complexes and establishing cold-chain.
Jefferies expects the stock to double over the next three years driven by an estimated 22% annualised growth in volumes over FY21E-25E with the commissioning of the dedicated freight corridor.
16 out of the 37 analysts tracking the stock have a 'buy' rating, 16 suggest 'hold' while five have a 'sell' call, according to Bloomberg data. The average 12-month price target implies an upside of 0.7%.
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