Container Corporation of India fell 6.87% to Rs 572.45 after the company said it will contest Directorate General of Foreign Trade claim on benefit under export scheme program.
Container Corporation of India (CONCOR) said it claimed a benefit of Rs 1,044 crore for FY2016-2019, but Directorate General of Foreign Trade (DGFT) said that claims up to Rs 861 crore are not eligible for the Service Exports from India Scheme (SEIS) benefit. This is subject to further verification by DGFT's central licensing area office. In view of above, CONCOR is taking appropriate action of contesting the above decision of DGFT in line with the legal advice. The announcement was made after market hours on Friday, 1 October 2019.
Meanwhile, a foreign brokerage has reportedly maintained a 'buy' rating on the stock, with a target of Rs 621 per share.
Shares of CONCOR slumped 10.48% in three trading sessions to its current market price of Rs 572.45, from a recent closing high of Rs 639.50 on 1 October 2019.
Meanwhile, the S&P BSE Sensex was up 93 points or 0.25% to 37,766.
On the BSE, 64,283 shares were traded in the counter so far compared with average daily volumes of 1.57 lakh shares in the past two weeks. The stock hit an intraday high of Rs 604.90 and an intraday low of Rs 562 so far during the day.
The stock hit a 52-week high of Rs 665.05 on 1 October 2019. The stock hit a 52-week low of Rs 433.16 on 25 October 2018.
CONCOR's consolidated net profit fell 5.7% to Rs 244.01 crore on a 3.6% increase in net sales to Rs 1,654.76 crore in Q1 June 2019 compared with Q1 June 2018.
CONCOR is engaged in transportation of containers (rail and road), and handling of containers. The firm is also engaged in the operation of logistics facilities, including dry ports, container freight stations and private freight terminals. Its divisions are export-import (EXIM) and domestic.