Buy Gateway Distriparks; target of Rs 110 Sharekhan

Sharekhan's research report on Gateway Distriparks

For Q2FY2024, GDL reported in-line operational performance, while lower depreciation and lower effective tax rate led to a PAT beat. CFS business remained weak as per expectation. For H2FY2024, the management expects 12% y-o-y volume growth in Rail while operational profitability is expected to improve gradually with improving EXIM imbalance. Capex plan of Rs. 300 crore remains unchanged for two new terminals, Jaipur ICD and replacement in the vehicle fleet. Three new rakes to be added by FY2024 end.

Outlook

We retain a Buy on Gateway Distriparks Limited (GDL) with a revised price target of Rs. 110, increasing our valuation multiple, considering improving export-import growth outlook.