Sharekhan's research report on Gateway Distriparks
For Q4FY2021, GDL reported better-than-expected operational performance led by its Rail division. Strong operational performance and lower interest expenses helped net earnings beat estimates. Second wave of COVID-19 is unlikely to affect volumes in Q1FY2022. Expect vaccination drive to ease near-term impact on volumes while growth drivers remain intact. Capex of Rs. 120 crore planned over the next two years for setting up two satellite rail terminals along with a lookout on acquisitions. Consolidated net debt fell in Q4, strengthening balance sheet.
Outlook
We maintain a Buy on Gateway Distriparks Limited (GDL) with a revised SOTP-based PT of Rs. 235 as we expect improved operational profitability to sustain.
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