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Buy Gateway Distriparks, target of Rs 152: KR Choksey
KR Choksey has come out with a research report on Gateway Distriparks (GDL). The research firm has recommended a buy to the stock with the target price of Rs 152.
KR Choksey has come out with a research report on Gateway Distriparks (GDL). The research firm has recommended a buy to the stock with the target price of Rs 152.
"Based on the conversion, GDL's stake in GRFL (Gateway Rail Freight Limited) may range between 48-60%. We believe the fall in the stock price reflected investors concerns over the dilution of the GDL's stake in GRFL, particularly due to the revival seen in the Rail segment in the past two quarters. The Rail business is expected to be a strong revenue driver for the company in the coming years and hence the dilution of equity in this segment was not viewed positively by the market. We believe the decline in GDL's stock was unwarranted, as the company had indicated earlier that they would be going for PE funding for future investments. This deal values GRFL at Rs 600-800 crore. In our view the company would deliver operating performance so as to maintain its stake at 60% in GRFL. Based on our calculation, we believe GDL's stock seems attractively priced at the current levels. We recommend a buy to the stock with the target price of Rs 152", says KR Choksey Shares and Securities.
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To read the full report click on the attachment.........
