Sharekhan's research report on Gateway Distriparks
For Q3FY2021, GDL reported better-than-expected operational performance led by its Rail division. Strong operational performance along with lower interest expense leads to beat on net earnings. Strong volume growth outlook during FY2023 and FY2024 led by improving EXIM trade environment, commissioning of western DFC line and phase II JNPT expansion. Capex of Rs. 120 crore over the next two years for setting up two satellite rail terminals. Consolidated net debt reduced to Rs. 494 crore from Rs. 681 crore in FY2020.
We maintain a Buy on Gateway Distriparks Limited (GDL) with arevised SOTP-based PT of Rs. 150 due to its attractive valuations and an improved growth and profitability outlook for its key verticals.