Sharekhan's research report on Gateway Distriparks
For Q2FY2020, GDL reported a sequential improvement in operating profit led by both CFS and Rail verticals. However, CFS volumes and capacity utilization at Snowman dips. Management’s focus to be on de-leveraging balance sheet by shedding capex plans and non-core asset divestment. Expect CFS business to stabilize and improve upon volumes from hereon. Rail to sustain profitability on improved market share and cost efficiencies.
Outlook
We maintain Buy on Gateway Distriparks Limited (GDL) with a revised SOTP-based PT of Rs. 115 on account of comfort on valuation and expecting gradual improvement in net earnings led by improved operational profitability.
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