ICICI Securities research report on Gateway Distriparks
Gateway Distriparks (GDL) continued to impress with an industry leading rail container volume growth (16% YoY growth for Q4FY22; 34% YoY growth for FY22). GDL has been gaining significant market share in the NCR despite heightened competition quarter after quarter, without compromising on realisation or EBITDA/te. Even adjusting for Rs120mn of compensation received on land parcel sales adjacent to Garhi Harsaru, rail EBITDA/teu was ~Rs9,000 for the quarter; management expects the same to be maintained over FY23E. Market share of GDL in the NCR has crossed ~15% (up > 300bps YoY) despite significant competitive intensity (~ 15 ICDs in NCR). Market share in Ludhiana is maintained despite ~8 ICDs operating in the region. Management expects to pass on the cost impact on account of Indian Railways removing 5% rebate over haulage of loaded containers and 25% rebate over haulage of empty containers.
Outlook
We maintain BUY with a revised target price of Rs102/share (Rs 83/share earlier).
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