Sharekhan's research report on Gateway Distriparks
For Q3FY2020, GDL’s consolidated adjusted net earnings came under pressure led by steep decline in volume and profitability in its CFS business. Positively however, the rail business sustained healthy volume growth and profitability. Snowman stake sale to conclude by FY2020 end de-leveraging consolidated balance sheet and chalking plans of rail vertical expansion. GDL receives ADGFT notice for accounting prior period SEIS income. The company would be filing a response and believes it to be rightly availed.
Outlook
We maintain Buy on Gateway Distriparks Limited (GDL) with a unchanged SOTP-based PT of Rs. 150 as we roll forward our valuation to FY2022 offsetting earnings downgrade in FY2020-FY2021.
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