Sharekhan's research repor on Gateway Distriparks
For Q1FY2021, GDL reported better than expected net earnings led by strong outperformance on OPM front. Rise in imports, savings in haulage charges and accrual of ground-rent led to strong beat on operational profitability. GDL continues to focus on de-leveraging with proposed rights issue. Post which, it will be undertaking capex plan for its rail vertical. Snowman logistics is expected to fare well with improving operational profitability and capacity expansion plan.
Outlook
We maintain Buy on Gateway Distriparks Limited (GDL) with an unchanged SOTP-based PT of Rs. 110 due to attractive valuation and improving growth and profitability outlook of its key verticals.
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