Buy Gateway Distriparks; target of Rs 260: ICICI Direct

ICICI Direct's research report on Gateway Distriparks

GDL’s Q4FY21 revenues grew 17% YoY to Rs 350 crore, led by 16% growth in the rail segment to Rs 255 crore and 20% growth in the CFS segment to Rs 96 crore. Rail volumes grew 15% YoY to 77772 TeUs and posted a record ~Rs 9926/TeU EBITDA performance. Subsequently, absolute EBITDA grew 48% to Rs 95 crore (led by EBITDA margin expansion by 566 bps to 27.2%). However, PAT grew 3x to Rs 47 crore as a stronger operational performance was further supported by lower depreciation and interest expense.

Outlook

We maintain BUY rating on the stock with a revised target price of Rs 260 (19x FY23E EPS, earlier TP Rs 240).