India's Allcargo gains on Jefferies' view of breakeven margins in FY24

Allcargo Logistics

07/07/2023 09:47

** Shares of Allcargo Logistics  ACLL.NS  up ~2% at 286.05
rupees, set for best one-day gain in one month
    ** Jefferies expects ACLL's core margins to break even in
FY24 vs -3.8% in FY21
    ** Expects 27% EPS CAGR in FY24-26 between Gati Express
turnaround and international volume growth recovering
    ** Says post demerger of container freight and real estate
units, management to focus on cementing leadership position in
global less-than-container-load (LCL) market (had 15% share in
May)
    ** Jefferies "buy" rating, reduces TP to 370 rupees from 500
rupees, implied upside of 32.1% from last close
    ** Avg rating of three analysts close to equivalent of
"strong buy", median PT is 370 rupees - Refinitiv data

 (Reporting by Ashish Chandra in Bengaluru)
 ((ashish.chandra@thomsonreuters.com (+91 7982114624))