ICICI Securities has given Buy recommendation for Gateway Distriparks with a target price of Rs. 102 in its research report issued on Apr 27, 2022

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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