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Concor shares: CONCOR shares have potential to double in 3 years, says Jefferies

MUMBAI: Shares of Container Corporation have potential to double over the next three years driven by a strong 16% compounded growth in volume between the ongoing financial year and financial year 2024-25 period, said Jefferies.

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.

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