Gateway Distriparks Ltd. share price target

Subsequently, PAT came in at | 47 crore vs. | 4 crore in Q2FY21 for the business, led by higher asset turnover due to better turnaround times for the rail segment (27 hours from Gujarat based ports to NCR). It entails higher spare capacity from existing infrastructure and better return ratios. We remain positive on the stock and maintain our BUY recommendation Target Price and Valuation: We value the stock at | 350 i.e. 23x P/E on FY23E EPS Key triggers for future price performance: Along with the better turnaround times, we expect higher double stacking on the route (both export and import...

September, 2021, GDL stands to gain in the medium to long term from enhanced delivery times, greater modal shift from road to rail and faster turnaround times We remain positive on the stock and maintain our BUY recommendation Target Price and Valuation: We value the stock at | 340 i.e. 26x P/E on FY23E EPS Key triggers for future price performance: GDL has been actively lowering its net debt position, which reached a high of ~ | 740 crore in FY19 (due to buyback of Blackstone's entire stake in the rail segment for | 850 crore), at ~| 470 crore in...

DFC is expected to be connected to Pipavav port and Mundra port in Gujarat by CY21 end to early CY22, which should benefit CTOs like GDL in terms of higher volume growth. DFC is likely to enhance the operational metrics of CTOs with enhanced visibility on delivery time due to time tabled freight trains and higher share of double stacked trains enabling better operational efficiencies, among other triggers. The segment is witnessing stronger profitability owing to better turnaround time (EBITDA/TeU reached ~| 10000 levels in Q4FY21, partly supported by IR rebates on haulage charges for...

Snowman Logistics is eyeing potential opportunities for transporting COVID vaccines (once launched domestically). To go ahead with capacity expansion at four locations. Gateway Distriparks Limited (GDL) reported lower-than-expected consolidated revenues, while OPM remained in line. Net profit was affected by a higher effective tax rate. Consolidated revenues declined 19.2% y-o-y to Rs. 262.5 crore as volumes in both CFS (down 25.7% y-o-y) and Rail (down 15.7% y-o-y) segments declined. However, EBITDA/TEU for CFS improved by 38.5% y-o-y while that of rail increased by 7.4% y-o-y. Hence, overall OPM broadly remained in-line at 24.9% (up 287 bps y-o-y) leading to a smaller dip in operating profit (down 8.7%...

Valuation Maintain Buy with a revised PT of Rs. 110: GDL's rail business and cold chain business continue to fare well in the current environment owing to being categorized in essential services. The CFS business may remain under pressure in FY2021 while gradually improving in FY2022. We believe GDL's deleveraging plan along with healthy profitability in the rail division should gradually drive net earnings growth during FY2022. We have lowered our earnings estimate for FY2021-FY2022 factoring in lower volumes on account of COVID-19 pandemic. GDL's current valuation at 5.7x EV/EBITDA and 0.7x...

Valuation Maintain Buy with a revised PT of Rs. 110: GDL's rail business and cold chain business continue to fare well in the current environment owing to being categorized in essential services. The CFS business may remain under pressure in FY2021 while gradually improving in FY2022. We believe GDL's deleveraging plan along with healthy profitability in the rail division should gradually drive net earnings growth during FY2022. We have lowered our earnings estimate for FY2021-FY2022 factoring in lower volumes on account of COVID-19 pandemic. GDL's current valuation at 5.7x EV/EBITDA and 0.7x...

Key risks: (1) Delayed execution of the DFC, (2) Gateway Rail has received a circular from the DGFT, regarding the basis for availing SEIS benefits of Rs 1bn (received for FY16-18). This matter is being contested and the mgmt is confident of its stance (3) Weaker than expected economic recovery. We initiate on Gateway Distriparks (GDL) with a BUY. We expect rail volumes to grow in double digits from here on due to managements focused approach and the commissioning of the DFC over FY21-22. Further, the co is proactively exiting noncore segments/selling excess land, which will enable GDL to reduce debt by Rs 2.5bn in the near term. We set a Dec-21 based SoTP of Rs 180.

The company used the proceeds to redeem debentures of INR500m along with interest in Jan20, and now plans to focus on the core business. Commissioning of DFCC will be a key trigger for the company GDPLs YoY numbers are not comparable due to the consolidation of Gateway Rail from Mar19. CFS volumes declined 15% YoY to 94,337 TEUs, while Rail volumes were up 8% YoY to 61,634 TEUs. that the adoption of Ind-AS 116 led to an increase in EBITDA by INR123m. an exceptional gain of INR80m related to the sale of the CFS terminal. Also, the sale of the Chandra CFS in Chennai impacted volumes for the quarter, resulting in a loss of market share in Chennai. For GDPL, discounts have increased by ~14% over last one year to INR4,000/TEU. The company plans to incur capex of INR1.5b over the next two years, majorly toward setting up of satellite terminals in north.

Gateway Distriparks (GDL) has sold its entire stake of 40.25% in Snowman Logistics (SLL) for ~Rs. 296 crore to Adani Logistics (subsidiary of Adani Ports) in a deal valued at Rs. 44 per share. The stake sale was in line with GDL's focus on de-leveraging its balance sheet by exiting non-core businesses. In Q2FY2020, the company sold its Chennaibased container freight station (CFS) - Chandra CFS for ~Rs. 50 crore. Thus, the total proceeds (CFS + SLL stake sale) of ~Rs320crore will be utilised to repay debt (including the part payment of Rs. 270crore non-convertible debentures by March 2020). This would help in deleveraging the balance sheet and would help the company restructure...

Gateway Distriparks (GDL) has sold its entire stake of 40.25% in Snowman Logistics (SLL) for ~Rs. 296 crore to Adani Logistics (subsidiary of Adani Ports) in a deal valued at Rs. 44 per share. The stake sale was in line with GDL's focus on de-leveraging its balance sheet by exiting non-core businesses. In Q2FY2020, the company sold its Chennaibased container freight station (CFS) - Chandra CFS for ~Rs. 50 crore. Thus, the total proceeds (CFS + SLL stake sale) of ~Rs320crore will be utilised to repay debt (including the part payment of Rs. 270crore non-convertible debentures by March 2020). This would help in deleveraging the balance sheet and would help the company restructure...

Gateway Distriparks Limited (GDL) reported sequential improvement (not comparable y-o-y due to IND AS 116 adjustments) in performance for Q2FY2020. The CFS and Rail verticals reported 6% plus q-o-q improvement in EBITDA per TEU leading to 11% q-o-q rise in consolidated operating profit. The consolidated net revenue was up 3.5% y-o-y aided by rail (volume rise by 9% y-o-y). For rail, an increase in market share in Ludhiana, price hike taken at the start of FY2020 and reduction in variable costs improved profitability despite lower double stacking....

Gateway Distriparks Limited (GDL) reported mix bagged results for Q1FY2020. The rail division witnessed marginal volume improvement along with improvement in profitability. However, the container freight station (CFS) vertical suffered on both counts because of competitive intensity and higher DPD volumes. GDL booked Rs. 54.8 crore SEIS income pertaining to FY2017-FY2019, while on adoption of IND AS 116, EBITDA stood higher by Rs. 11 crore bifurcated to increased interest and depreciation. On like-to-like basis, revenue grew by 3.7%...

Q3 Rail volume declined 4% QoQ (up 8% YoY; Concor volume down 2% QoQ, up 11%YoY) on intermittent impact of rising trade imbalance (imports growing faster than exports); management highlighted slower volume growth for hinterland based cargo, though port volumes have grown YoY.

Rail reported EBITDA of INR349m (est. of INR386m; +2% YoY, -7% QoQ), led by 8% YoY growth (-4% QoQ) in container volumes to 58,720 TEUs. Rail volumes were impacted due to shift of traffic on account of increase in turn around times of trains due to capacity enhancement program by Indian railways in North west routes. Rail realization declined to INR32,936/TEU (-4% YoY, -1% QoQ) due to increase in discounts led by heightened competition. Hence EBITDA/TEU declined 5% YoY (-3% QoQ) to INR5940. Higher proportion of double stacking due to ramp up of Viramgam terminal partly negated the impact of higher turn around times. Productivity of rail segment will continue to be impacted in 4QFY18 due to higher turnaround times.

Gateway Distriparks' (GDPL) Q2 witnessed strong rebound in rail performance: (a) volume up 20% QoQ/ 12% YoY on improved market share in NCR and uptick in import volume and (b) synergies from Viramgam terminal (hub terminal now, operational from Aug'17)

Rail margin revives sharply on cost efficiencies GDPL reported EBITDA (RAIL + CFS) of INR587m (est. of INR513m; 1% YoY, 31% QoQ). PAT (before associate/minority interests) of INR290m (+15% YoY, 61% QoQ) was higher than our estimate of INR214m due to a higher margin in the rail segment and a lower tax rate. Rail margin revives led by commissioning of Viramgam Rail reported EBITDA of INR375m (est. of INR303m; +10% YoY, +49% QoQ), led by 11.5% YoY growth in container volumes to 61,254 TEU. Rail volume...

Mixed Quarter: Gateway Distriparks Ltd (GDL) has posted mixed set of standalone numbers wherein revenue from operations for Q1FY18 came at Rs.809 Mn as against Rs.803 Mn of Q1FY17 and Rs.744 Mn of Q4FY17 thereby exhibiting moderate growth of 0.8% and 8.8% on YoY and QoQ basis respectively.

Gateway Distriparks' (GDPL's) Q1 was marred by subdued Rail business performance due to (a) operational issues with Railways' line at Ajmer (one of the key routes for GDPL) this led to lower volumes as well as higher operating cost and

In compliance with IND AS, GDPL reported Gateway Rail Freight (50% owned) as a JV. As current consolidated financials (CFS business only) is only ~40% of aggregate EBITDA (CFS and Rail)