Sharekhan's research report on Gateway Distriparks
For Q4FY2020, GDL’s consolidated adjusted net earnings came better than expectation owing to strong volume and profitability in its rail vertical. CFS segment’s performance got affected by COVID-19 led lockdown. GDL to raise funds through equity to pare down consolidated debt before going ahead with its capacity expansion plan in the rail division. Resolution of Snowman acquisition may take time. Snowman Logistics showed improvement in earnings sequentially. Management to go ahead with capacity expansion plan.
Outlook
We maintain Buy on Gateway Distriparks Limited (GDL) with a revised SOTP-based PT of Rs.110due to attractive valuation post downgrade in earnings estimates for FY2021-FY2022 factoring COVID-19 led disruptions.
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