Gateway Distriparks Q1 Review - To Continue Focusing On Growth, Start Two New Terminals Soon: ICICI Securities
Key positives, growth focus and market share retention.
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ICICI Securities Report
Gateway Distriparks Ltd.’s Q1 FY24 Ebitda performance was broadly in line with estimates. Key points:
Volume was impacted by disruption in rail network and port operations owing to cyclone in Gujarat;
Ebitda/tonne improved to Rs 5,302 (versus Rs 5,109 in Q4 FY23) due to favorable volume mix;
Kashipur inland container depots is ramping up well while Jaipur ICD is expected to commence operations by end-FY24; and
focus on growth continues with the aim to start at least two additional terminals soon.
Going ahead, Gateway Distriparks's management has guided for rail Ebitda/tonne to reach Rs 10,000 and volume growth to be the main revenue contributor.
Factoring in growth prospects, we raise our enterprise value/Ebitda multiple by 10% to 11 times (earlier 10 times). Our revised target price works out to Rs 94 (earlier Rs 85).
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