Motilal Oswal's research report on Gateway Distriparks
GDPL reported EBITDA (R ail + CFS) of INR 450 m (est. of INR 531m; -19% YoY, -14 % QoQ). PAT (before associate/minority interests) of INR 180 m (-20 % YoY, - 19% QoQ) was below our estimate of INR 250m due to lower margins in the R ail segment. CFS profitability was largely in line, as the better performance in standalone operations was offset by the weaker subsidiary performance.
Outlook
valuing CFS business at 11 x FY 20 E earnings, 40% stake in Snowman at 50% discount to mark et value, and Rail segment at 12 x FY 20 E EV/EBITDA. The stock trades at 14.7 x FY 20 E EPS of INR 16.1. Maintain Buy.
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