August 10, 2016 / 13:07 IST
Motilal Oswal's research report on Gateway Distriparks
EB ITDA/PAT below estimates; volumes appear bottoming out; awaiting EXIM revival Gateway Distriparks’ (GDPL) reported EBITDA (RAIL + CFS) of INR 555m came in below our estimate of INR 600m (-20% YoY, -2% QoQ), primarily due to lower than-estimated EBITDA in the rail division. PAT (before associate/minority interests) of INR 225m (+13% YoY, -7% QoQ) missed our estimate of INR 274m. Difference at the PAT level increased due to higherthan- estimated tax rate of 35.6% (due to one-off).
Our FY16-18 volume CAGR assumptions for the rail/CFS divisions stand at 9%. We value GDPL based on a SOTP-based fair value of INR 393/share, which includes INR 356/share for its core business on a DCF basis (WACC: 12.2%, TGR: 4%) and INR 37/share for Snowman, post 25% discount.
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