Container Corporation Share Price: Jefferies maintain buy rating and raises price target to Rs 700
Jefferies were positively surprised at Tughlakabad (TKD) seeing limited volume loss, despite the 10-12% realisation hike effective 6 Dec 2020. Jefferies interactions with competitors suggest no material volume inflow from TKD, in-line with management’s Q3 commentary. TKD hike implies 5% YoY realisation rise in FY22E vs earlier 3% expectation. Jefferies raised their FY22E-25E realisation CAGR to 4% vs 2% and EPS by 18-19%.
Jefferies assumed gradual EBITDA/TEU normalisation from Rs 2043/TEU in FY21 to Rs 3598/TEU in FY25E with more subdued price hikes: Reuters