CONCOR Shares Rebound as Bonus Issue Takes Center Stage, Despite Year-to-Date Dip

Shares of state-owned logistics giant Container Corporation of India Ltd. (CONCOR) saw an uptick for the second consecutive trading session on Friday, July 4th, as the stock began trading on an ex-bonus basis. This positive movement comes after the company declared a 1:4 bonus issue, meaning shareholders received one free share for every four shares they held.

The record date for this bonus issue was set for July 4th, making today the "ex-bonus" date. For investors, this signifies that only those who held CONCOR shares in their demat accounts by the end of trading on Thursday, July 3rd, are eligible to receive these bonus shares. Those purchasing the stock on or after Friday will not be entitled to the free shares.

Bonus issues are a strategic move by companies to capitalize on their accumulated reserves, effectively converting a portion of their profits into additional share capital. While they increase the number of outstanding shares, they do not alter the company's overall market capitalization. Instead, the share price typically adjusts downwards proportionally to reflect the increased number of shares, theoretically making the stock more accessible to a wider pool of retail investors and potentially boosting liquidity.

However, despite this recent positive momentum driven by the bonus issue, CONCOR's year-to-date performance remains challenging. The stock is down a substantial 23% so far in 2025, reflecting broader concerns about the company's operational performance.

Indeed, CONCOR recently reported a significant miss on its volume growth guidance for the recently concluded financial year (FY2025). The company recorded a total volume growth of just 8%, falling considerably short of its ambitious projection of 18% to 20%. This disparity could be a key factor weighing on investor sentiment and contributing to the stock's underperformance throughout the year.

From a technical perspective, the Relative Strength Index (RSI) for CONCOR currently stands at 46.9. An RSI reading above 70 typically indicates that a stock is in overbought territory, while a reading below 30 suggests it might be oversold. The current neutral reading suggests that the stock is not currently experiencing extreme buying or selling pressure, though the ex-bonus adjustment needs to be factored into any technical analysis.

The Indian government remains the single largest shareholder in CONCOR, holding a substantial 54.8% stake. As of Friday's trading, CONCOR shares were hovering around ₹600.45, reflecting a modest gain of 0.69% for the day after giving up some earlier gains.

The coming weeks will be crucial for CONCOR as investors scrutinize the impact of the bonus issue on its trading dynamics and eagerly await further updates on its operational performance and future guidance, particularly given the recent miss on volume targets.