Karvy Stock Broking has maintained its buy rating on Gateway Distriparks with a revised target price of Rs 155 in its May 13, 2008 research report. "Gateway Distriparks Ltd (GDL) reported the revenue growth of 78.1% YoY (QoQ growth of 16.1%) to Rs 835.5 million driven by ramp up of rail business. The revenue was 10% higher than our estimates of Rs 757.8 million. Overall, net profit declined by 16.8% to Rs 164.8 million translating into EPS of Rs 1.3 as against expectation of Rs 1.9."

"For FY08, revenue increased by 66.4% to Rs 2.67 billion and profit declined by 4.75% to Rs 740.7 million. We have introduced our FY10 estimates and expect revenue to increase at a CAGR of 44% to Rs 5.55 billion and profit to increase at a CAGR of 19% over next two years to reach Rs 1.05 billion in FY10. At current price Rs 117, the stock is trading at 18.5x FY09 and 12.9x FY10 earnings and EV/ EBIDTA it is trading at 11.2xFY09 and 8.3x FY10. We are revising our valuations from 17xFY09 to 17xFY10 with price target of Rs 155 (Previous Rs 160) and maintain our BUY rating," says Karvy's research report.

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