Sharekhan's research report on Gateway Distriparks
For Q1FY2020, GDL reported mixed results, where its rail vertical showed improvement in volume and profitability, while CFS and cold chain business fared muted. Results had adjustments related to SEIS and IND AS accounting. GDL would be undertaking capacity expansion plan in rail and cold chain. The CFS division not to have any capex as of now. Management expects FY2020 to remain muted on account of continued trade imbalance with focus on maintaining current profitability.
Outlook
We upgrade Gateway Distriparks Limited (GDL) to Buy with a revised SOTP-based PT of Rs. 130 on account of comfort on valuation post steep correction despite building in muted earnings for FY2020-FY2021.
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