The other worry is the potential buyout of the inland container depot land by Concor
which could impact its cash flow generation over the next few years. Given the Rs 3,000 crore of net cash estimated at the end of FY20, Concor
would have to take debt of Rs 5,000 crore of net debt to fund the purchase. This, according to the brokerage, would limit scope for Concor to use the pricing lever to drive share gains from commissioning of the dedicated freight corridor.
Despite the cut in earnings estimates, analysts at Edelweiss have upgraded the stock given the sharp fall in stock price even after factoring in the purchase of railway land. While the land purchase may put off potential buyers, any progress on divestment will be a positive from the investors’ point of view