Buy Gateway Distriparks; target of Rs 80: Sharekhan

Sharekhan's research report on Gateway Distriparks

For Q4FY2023, GDL reported largely in-line operational performance while one-off write offs of prior-period expenses led to PAT beat. CFS operational profitability stays under pressure. For FY2024, the management expects double digit revenue growth for rail while flattish to marginal 1-2% revenue growth for the CFS division. Company will incur Rs. 300 crore of capex over FY2024-FY2025 on two new terminals, upgradation of existing terminals, Jaipur ICD, replacement in vehicle fleet and leasing three rakes.

Outlook

We upgrade Gateway Distriparks Limited (GDL) to Buy with a revised price target of Rs. 80, rolling forward our valuation multiple to FY2025 earnings and considering improving export-import growth outlook.

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