Buy Gateway Distriparks; target of Rs 92: Sharekhan

Sharekhan's research report on Gateway Distriparks

For Q2FY2023, GDL reported better than expected operational performance led by sustained strong performance in rail along with healthy EBITDA/TEU in both rail and CFS. It retained volume growth guidance of 6-7% y-o-y for FY2023 excluding incremental volumes from Kashipur and Jaipur units. It is undertaking capex of Rs. 350-400 crores next 18 months which includes upfront payment towards acquisition of Kashipur ICD, construction spends for greenfield ICD at Jaipur and setting up of the third terminal.

Outlook

We upgraded Gateway Distriparks Limited (GDL) to Buy with a revised price target of Rs. 92, factoring in an upward revision in estimates, rolling forward our valuation multiple to September 2024 earnings and lower leverage.

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