Sharekhan is bullish on Gateway Distriparks and has recommended buy rating on the stock with a target of Rs 310 in its August 21, 2014 research report.
Sharekhan`s research report on Gateway Distriparks
“Gateway Distriparks Ltd (GDL)’s existing subsidiary, Snowman Logistics Ltd (SLL), has announced an initial public offering in the band of Rs44-47 per share, which is higher than the expectations of around Rs38-40 per share. GDL has thus appreciated by close to 14-15% over the last few days on the back of the anticipated listing of its cold chain business, SLL. SLL’s possible listing was highlighted as a re-rating trigger by us in the previous updates on GDL due to the value unlocking that it would result in for the minority shareholders of GDL.”
“In our valuation of GDL (based on the sum-of-the-parts method where all three businesses, CFS, rail freight and SLL, are valued separately), we had conservatively valued the SLL business at Rs24 a share (even lower than the price of Rs35 a share paid by Norwest Venture Partners for buying 1.7 crore shares in SLL). Hence, we see scope for upgradation of our price target by close to Rs30 a share. Thus, we maintain our Buy rating on GDL with a revised price target of Rs310,” says Sharekhan research report.
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