Accumulate Gateway Distriparks; tgt of Rs 163: PLilladher

5696 Investors following Gateway Distri. Share this News with them.

0

Like this story, share it with millions of investors on M3

Accumulate Gateway Distriparks; tgt of Rs 163: PLilladher

Prabhudas Lilladher is bullish on Gateway Distriparks and has recommended accumulate rating on the stock with a target of Rs 163 in its February 1, 2012 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Sell Usha Martin; target of Rs 22: Aditya Birla Money Sell Bank of India; target of Rs 299: Dolat Capital Sell Bhushan Steel; target of Rs 297: PINC Research ALSO READ See previous views by Prabhudas Lilladher See what other Experts & Brokerages are saying about Gateway Distri See messages about Gateway Distri Gateway Distri BSE | NSE 30/05/12 Are Mutual Funds betting on Gateway Distri?

Prabhudas Lilladher is bullish on Gateway Distriparks and has recommended accumulate rating on the stock with a target of Rs 163 in its February 1, 2012 research report.

"Gateway Distriparks' (GDL's) standalone revenues stood at Rs562m, a growth of 8% YoY; however, down 7% QoQ. The sequential decline was mainly on account of a ~12% drop in volumes at Mumbai CFS, cushioned a bit by an improvement in realizations (+7% QoQ). Higher dwell time in Q3FY12 (~12 days) as against ~11 days in Q2FY12 propped up realizations. EBITDA margins were flat on a QoQ basis at 57.1% compared to 56.8% in Q2FY12. Consequently, PAT stood at Rs206m, down 10% YoY and 9% QoQ."

"Overall, CFS volumes declined 9% QoQ to 79,347 TEUs on account of a 12% sequential decline in Mumbai CFS volumes. Despite JNPT port volumes growing ~2.5% QoQ, GDPL's Mumbai CFS witnessed a 12% decline in volumes, indicating a loss of market share for the company this quarter. However, a 8% sequential improvement in blended CFS realizations resulted only in a marginal drop in CFS revenues QoQ (-1%). Management indicated that the Cochin CFS at Vallarpadam is almost ready and is expected to start partial operations within a month. Also, the company remains bullish on the prospects of the Chennai CFS market and is actively scouting for a land parcel to expand CFS capacity in this market."

"Rail business continued its steady performance of H1FY12 in Q3FY12 as well. On account of the company's rakes operating at near peak utilizations, the company is guiding to add 6-8 rakes in the next fiscal to grow the rail business. GDL remains upbeat on the rail business, and has guided for a capex of ~Rs1.3bn for FY13 in this vertical. There has been some positive movement on the approvals front at the Assauti terminal in Faridabad and thus with regulatory uncertainty subsiding, GDL now expects the terminal to be commissioned by July 2013. We expect the rail business to drive revenue growth for the company, going forward."

"We continue to value the CFS and the cold chain business at PER of 13x FY13 which gives us a value of Rs132/share. Further, we are valuing the rail business at P/B of 1.25, with a 10% holding company discount. Our SOTP-based target price works out to Rs162. We maintain 'Accumulate' on the stock," says Prabhudas Lilladher research report.   

FIIs holding more than 30% in Indian cos

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click on the attachment