Investors in the Container Corp. of India Ltd (Concor) stock heaved a sigh of relief after clarity emerged on the contentious land licensing fee (LLF) issue. The stock rose to a new 52-week high on Monday before ending the day’s session more than 8% higher on the National Stock Exchange (NSE).
In a conference call, the company’s management said that it has resolved the LLF issue with the Indian Railways.
“The overhang of uncertainty on account of LLF is largely behind us as LLF estimates for the company and Indian Railways appear to have converged. LLF for FY21 seems to be largely settled and is modestly lower than our estimate of ₹590 crore. This is a key positive for the stock,” analysts at Nomura said in a report on 24 May.
For FY21, Concor paid ₹520 crore in LLF charges on the basis of 6% of the calculated current market price of railway land parcels.
The management said it has surrendered 16 terminals to the Indian Railways. For FY22, the company expects to pay ₹450 crore as LLF, as it intends to surrender two more rail terminals and is also looking at rightsizing the existing terminals.
Source : Livemint
