Sharekhan's reserach report on Gateway DistriparksAs per our interaction with the management of Gateway Distriparks Ltd (GDL), the overall weak demand environment may affect the company in the near term. However, it will be too early to estimate the extent of the effect on the volumes for the current financial year. After Q2FY2016 results, we had already factored in lower volumes in rail division as well as margin erosion in container freight station (CFS) division which can put near-term pressure on the company’s financials. We expect Q3FY2016 earnings to remain weak.The company had been under pressure recently due to complete exit of one of the promoters/promoter groups lowering promoter group stake to 25.18% from 32.86%. Further, subdued macro environment and ban on its Chennai CFS facility aided to weak H1FY2016 performance coupled with delay in GST Bill dampened the sentiments. However, we believe the above events are near-term issues and are largely priced in the recent underperformance of the stock, nevertheless the structural long-term growth story remains intact and expect growth acceleration in FY2017 and FY2018. We have maintained our Buy rating on the stock with an unchanged price target of Rs 385 for 12 months.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
Read More
