The foreign brokerage said expected commencement of the dedicated freight corridor would be the key driver.
The stock was up 2.1% at Rs 375.25 in afternoon trade. Jefferies has a buy rating on the stock with a target price of Rs 525.
“Project envisioned in FY06 should commence operations FY22 onwards, after a long wait. Western DFC connects Mumbai-Delhi and Gujarat-Delhi over 1,504 km. Eastern DFC connects Howrah-Ludhiana over 1,856 km,” said Jefferies.
“DCF will lead to jumpin volumes of 16% plus CAGR over FY20-FY25,” said Jefferies.
Jefferies said FY21 profits of the company are impacted due to land licence fee issue but it expects a gradual normalization of EBITDA per twenty-foot equivalent unit by FY25.
“Potential privatization can be the additional upside,” said Jefferies.
The brokerage’s base case involves expectation that the company’s market share will be maintained given pan-India presence.