Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  

| More

Gateway Distriparks - Rail continues to drive earnings - ICICI Securities

Posted On: 2021-10-24 15:37:09 (Time Zone: IST)

Gateway Distriparks (GDL) looks forward to significant operational advantages (higher volume share + higher containerization + higher double stacking) as DFC phase 1 starts commercial operations (with diesel locomotive). Management also underlined the target to reach Rs10,000/teu of EBITDA in the rail business - prioritising value over volumes. GDL's rail performance in Q2FY22 was industry leading, with 46/8% YoY/QoQ volume growth, with significant market share gains in the NCR market on the back of prudent pricing. Capex to create satellite terminals for further market penetration in the NCR market continues, yet the cashflow profile appears strong enough to allow deleveraging. We upgrade GDL to BUY from ADD.

  • Rail volumes start to show benefits from DFC commissioning. Trial runs on DFC from Rewari to Palanpur are completed and the phase is fully commissioned. The significant shift from road to rail will happen after consistent operations begin on the Rewari to Palanpur line of DFC. Management expects to see regular operation on DCF from this quarter on this particular route. Electrification of Surendranagar to Pipavav has completed, so electric trains (with double stacked containers) can run from Garhi Harsaru to Pipavav. While this has also allowed start of a scheduled train service by Pipavav Rail, management doesn't see much competitive threat from the same.
  • Current capacity of leased rakes can allow 15% more volumes. Management believes there will be huge opportunity, as road cargos get converted into railway containers and existing tracks (Port to DFC) are upgraded to handle the 25te of axle load being carried at 100km per hour. Additionally, improving container penetration will aid business growth as per management (as only 55-60% container cargo actually being carried in containers and the rest of the part container load even today comes from breakbulk vessels). Gateway is confident of achieving double-digit growth irrespective of India's macro-economic growth because of better logistic infrastructure, which will convert break bulk cargo to containerized cargo.
  • Strong market share growth witnessed in the NCR. Gateway has taken a price increase in Ludhiana market as well as in NCR market; it is a marginal price hike which takes care of operational cost on account of inflation. NCR market share growth for GDL is due to the organic growth in the Gurgaon market where GDL has been dominant. GDL has been able to acquire additional volumes of existing customers as well as new customers. GDL has the best delivery time as of now, in terms of import and export directions from the NCR market (as per management).
  • Expansions in Snowman to target the pharma business, capex of Rs4.5bn. Company has internally created pharma vertical, where they do marketing of business separately from regular marketing. Management is looking to create an asset light model for cold chain transportation as a key business lever to turn profitable in the cold chain transportation segment. Management expects better pricing power from the new commissioned capacity in Coldchain warehousing in Cochin and Coimbatore. Snowman wants to expand its current pallet capacity to 20000 in the next 2-3 years and add area under management for the ecommerce business.

Shares of Gateway Distriparks Limited was last trading in BSE at Rs. 262.05 as compared to the previous close of Rs. 264.80. The total number of shares traded during the day was 619054 in over 927 trades.

The stock hit an intraday high of Rs. 276.90 and intraday low of 259.00. The net turnover during the day was Rs. 166190506.00.

Click here to send ur comments or to

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only., its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.

Other Headlines:

Mutual Fund Review - November, 2021 - ICICI Direct

Maintain SELL on Asian Paints - Demand rebound strong; profitability cut steeper - HDFC Securities

Mphasis - 2QFY22 Result Update - Growth Resiliency Continues; Raise Target Price - Reliance Research

JSW Steel - Start of EBITDA contraction cycle - ICICI Securities

Shoppers Stop - Beneficiary of faster than expected recovery - ICICI Securities

Asian Paints - Q2FY22 Result Update - ICICI Securities

TVS Motor Company - EVs now at the center of its global ambitions - ICICI Securities

Havells India - Strong demand across regions; profitability likely to be muted in H2FY22 - ICICI Securities

Tata Communications - Rising visibility on revenue growth - ICICI Securities

Angel Broking - Business momentum intact for strong earnings growth - ICICI Securities

Q2FY22 Result Update - Rallis India - ICICI Direct

Q2FY22 Result Update - Navin Fluorine - ICICI Direct

Q2FY22 Result Update - Shoppers Stop - ICICI Direct

Company Update - Mastek Ltd - ICICI Direct

Q2FY22 Result Update - JSW Steel - ICICI Direct

Q2FY22 Result Update - VST Industries - ICICI Direct

HDFC Life Insurance - Q2FY22 First Cut - ICICI Direct

Federal Bank - Q2FY22 First Cut - ICICI Direct

Company Update - Taj GVK Hotels - ICICI Direct

Q2FY22 Result Update - Indian Hotels - ICICI Direct

Inox Leisure - Q2FY22 First Cut - ICICI Direct

Supreme Industries - Q2FY22 First Cut - ICICI Direct

Q2FY22 Result Update - Biocon Ltd - ICICI Direct

PVR Ltd - Q2FY22 First Cut - ICICI Direct

Q2FY22 Result Update - Asian Paints - ICICI Direct

Quant Pick - RBL Bank - ICICI Direct

Q2FY22 Result Update - IIFL Securities - ICICI Direct

Q2FY22 Company Update - Bank of Baroda - ICICI Direct

Q2FY22 Result Update - Syngene International - ICICI Direct

Company Update - Sonata Software - ICICI Direct

Q2FY22 Result Update - Gateway Distriparks - ICICI Direct

Q2FY22 Result Update - Tata Communications - ICICI Direct

Q2FY22 Result Update - Havells India - ICICI Direct

Mphasis - 2QFY22 Result Update - Growth Resiliency Continues; Raise Target Price - Reliance Research

Maintain ADD on Havells India - Outperformance continues; miss on margin - HDFC Securities

Indraprastha Gas - Company Update - EV vs CNG; TCO Economics Favour CNG - Reliance Research

FinTech Playbook - Discount Brokers - 'Nudging' the long tail of standalone brokers - HDFC Securities

Tata Communication - Revenue growth remains muted - YES Securities

Havells India Ltd - Q2FY22 Result Update - YES Securities

ICICI Lombard General Insurance - Q2FY22 Result Update - YES Securities

Syngene International Ltd - Lack of near term triggers - YES Securities

Mphasis - Q2FY22 First Cut - YES Securities

IndiaMART InterMESH - Q2FY22 First Cut - YES Securities

Sterlite Technologies - Q2FY22 First Cut - YES Securities

Can Fin Homes - Q2FY22 First Cut - YES Securities

Havells India - 2QFY22 Result Update - Strong Revenue Growth; Higher Commodity Prices Impact Earnings - Reliance Research

TVS Motor - 2QFY22 Result Update - Healthy Exports Coupled with New Launches to Aid Higher Margins - Reliance Research

Maintain SELL on Jubilant FoodWorks - No big fireworks unlike in other discretionary names - HDFC Securities

Sonata Software - Strong execution - HDFC Securities

Navin Fluorine International - Muted performance - HDFC Securities

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020