Buy Gateway Distriparks; target Rs 140: ICICIdirect

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26 Aug, 2025 12:21

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ICICIdirect.com research report on Gateway Distriparks (GDL)

Partnering to surge ahead in Cold chain
Norwest Venture Partners (NVP) will invest Rs  60 crores in Gateway Distripark (GDL) subsidiary Snowman Logistics Limited (SLL) to acquire 14.3 percent stake in SLL valuing SLL at ~Rs 420 crores. Prior to the deal, SLL's Equity Capital was 10.29 crore shares with a face value of Rs 10 each which is set to expand by 1.7 crores shares to 12 crores shares taking the equity base to Rs 120 crores post deal. GDL, in order to keep its majority stake, bought 5 percent stake from one of SLL's shareholder (IFC) for a consideration of Rs  18 crores (valuing each share at Rs 35) prior to the deal. Post investment by NVP the shareholding pattern in SLL: GDL (51 percent), Mitsubishi (22 percent), IFC (13 percent) and NVP (14 percent).

Cold chain segment to propel to higher growth orbit
"SLL with 23 warehouses spread over 20 locations has a present capacity of 46000 pallets (FY15E capacity of 80,000 pallets) with an enviable fill time of 30 to 45 days. SLL has warehouses in all major cities like Mumbai, Chennai, Pune and plans to expand to other cities like Chandigarh and Surat. SLL has well diversified client base ranging from pharmaceuticals to "ready to cook" food segment. Going ahead, the company plans to switch to asset light model concentrating more on leased land and truck as compared to owned. Presently, SLL has 41 percent owned land against 59 percent leased and 60 percent owned truck vis-à-vis 40 percent leased (total 240 temperature controlled trucks). Buy the stock with a target price of Rs 140," says ICICIdirect.com research report.

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