Buy Gateway Distriparks; target of Rs 94: ICICI Securities

ICICI Securities's research report on Gateway Distriparks

Gateway Distriparks (GRFL)’s Q2FY26 EBITDA was in line with consensus estimates. Key points: 1) Rail volume grew 9.2% YoY while CFS volume grew 2.6% YoY. 2) EBITDA/teu of rail improved QoQ to INR 9,300 (vs. INR 9,100 in Q1FY26) while CFS EBITDA/teu declined QoQ to INR 1,000 (vs INR 1,500 in Q1FY26) owing to a one-time legal cost and higher repair and maintenance expenses. 3) Double-staking has improved QoQ to 41% (vs. 39% in Q1FY26). 4) Market share has improved marginally across Ludhiana and Uttarakhand. Management maintains its guidance of 10–15% volumes growth for FY26 driven by improved economic scenario due to trade agreements and expected DFC connectivity to Nhava Sheva port shortly. We maintain BUY and our TP of INR 94, based on a multiple of 10x FY27E EBITDA.

Outlook

Which could be absolute EBITDA accretive. We maintain BUY, with a TP of INR 94 on a multiple of 10x FY27E EV/EBITDA.