Gateway Distriparks Q4 Results Review - Wide Of Estimates; Near Term – Headwinds To Linger: ICICI Securities

ICICI Securities Report

Gateway Distriparks Ltd.’s Q4 FY24 Ebitda performance came in short of our/consensus estimates by 21.5%/17.8%. Key points:

1. Rail volumes fell 7.5% YoY (down 4.9% QoQ), while CFS volumes were largely stable; the dip in volumes is mainly due to the Rea Sea issues and EXIM imbalances.

2. Ebitda/tonne declined to Rs 4,715 (versus Rs 5,109 in Q4 FY23).

3. Double stack volumes slipped to 35% in Q4 FY24, from 40% in previous quarter.

Going ahead, management expects double-digit volume growth in the rail segment; and Ebitda/teu to sustain at Rs 9,500/Rs 1,500 for its rail/CFS divisions.

Despite the long-term prospects, we see near-term headwinds from the Red Sea crisis and EXIM imbalance persisting. We maintain Add with a revised target price of Rs 113 (earlier Rs 117) at unchanged 12 times FY26E Ebitda.

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