Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Google
Web www.equitybulls.com
Research

| More

Maintain BUY on Gateway Distriparks - An all-round results beat, encouraging outlook - HDFC Securities

Posted On: 2021-01-20 09:49:27 (Time Zone: Arizona, USA)


Mr. Aditya Makharia, Institutional Research Analyst, HDFC Securities

In 3QFY21, Gateway Distriparks' (GDL) EBITDA margin expanded 150bps QoQ to 26.3% and interest costs reduced to Rs 177mn (-18% QoQ) as the company deleveraged its balance sheet. This led to a significant PAT beat (Rs 327mn vs 40mn QoQ). The management has provided an upbeat outlook. In Sep-20, we upgraded Gateway Distriparks to BUY, given the company's improving fundamentals. We raise our FY22/23 estimates by ~6%. Maintain BUY with an SOTP-based target price of Rs 165, at 9x FY23E EV/EBITDA for the rail business.

3QFY20 financials: GDL's revenue at Rs 3.1bn grew 5/20% YoY/QoQ, owing to 9/19% growth in rail volumes. CFS volumes were up 7% QoQ (-11% YoY). EBITDA margin at 26.3% surprised positively (+150bps QoQ, 600 bps YoY) as the company benefitted from higher volumes and 5% rebate on container volumes offered by IR (till Apr-21). The company has been repaying its debt post the fundraise and, hence, the interest cost is down 33% YoY. APAT grew 3x YoY to Rs 327mn (due to lower tax rate of 6% in 3Q, aided by the availing of MAT credit).

Call and other takeaways: (2) Balance sheet deleveraging: The company's net debt stands reduced at Rs 4.94bn (vs Rs 5.09bn QoQ, 6.81bn in FY20). In the previous quarter, GDL used Rs 1.15bn raised via rights issue towards debt repayment. (2) DFC to benefit: (Link to our report: Indian Railways - getting aggressive) with the 306km long stretch from Rewari to Madar being inaugurated in Jan-21, the company expects a boost in volumes. The management expects rail throughput of 25k TEU/month vs ~21k currently. It also expects the 342-km stretch of Madar-Palanpur to commence by Sep-21. It will facilitate market share shift towards the rail as the journey time will be reduced from ~70 hours to below 40 hours. Further, shipping fleets will drive the shift to rail, and manufacturers will move the business towards the hinterland based ICDs. (3) Port connectivity: The Pipavav Port feeder line is expected to connect with the DFC by Sep-21 while Mundra Port feeder lines will perhaps be connected by Mar-22 (Palanpur - Gandhidham - Mundra).

Shares of GATEWAY DISTRIPARKS LTD. was last trading in BSE at Rs.141 as compared to the previous close of Rs. 117.5. The total number of shares traded during the day was 218353 in over 7491 trades.

The stock hit an intraday high of Rs. 141 and intraday low of 117.5. The net turnover during the day was Rs. 29084216.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


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. www.equitybulls.com, 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. www.equitybulls.com 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:

4th Industrial Conclave - Bullish undertone, favourable valuation - HDFC Securities

Sanofi India - Weak quarter; sequential improvement - ICICI Securities

Sunteck Realty - All eyes on upcoming launches - ICICI Securities

Company Update - Tata Motors - ICICI Direct

Q4CY20 Company Update - Mahindra CIE Automotive - ICICI Direct

Event Update - Hindalco - ICICI Direct

EY report launch at BioAsia 2021 - Moving the needle: Healthcare industry in a post-COVID world

Initiating Coverage - Dalmia Bharat Ltd - HDFC Securities Retail Research Desk

Initiating Coverage - Mastek Ltd - HDFC Securities Retail Research Desk

Hindalco Industries - Status quo maintained - ICICI Securities

Tata Motors - India business scaling in the right direction - ICICI Securities

IPO Review - Heranba Industries Ltd

Company Update - Narayana Hrudayalaya - ICICI Direct

Ambuja Cements - Market share sustenance key for rerating - ICICI Securities

ADD on Astral Poly Technik - An 'astr'onomical growth story - HDFC Securities

FMCG Sector Update Report - Divergence narrows; refocus on core - HDFC Securities

Maintain REDUCE on Jubilant FoodWorks - More legs for growth; reflecting confidence on core - HDFC Securities

Torrent Power - Growth acceleration - ICICI Securities

Mahindra CIE Automotive - CY20 performance closes on a strong note - ICICI Securities

Q3FY21 Company Update - V-Guard Industries - ICICI Direct

Quant Pick - Indus Towers - ICICI Direct

Q4CY20 Result Update - Ambuja Cement - ICICI Direct

Q3FY21 Company Update - Nesco Ltd - ICICI Direct

Maintain BUY on Ambuja Cements - Healthy quarter; multiple triggers ahead - HDFC Securities

Heranba Industries Ltd. - IPO - Sound Financials & Promising Outlook Augur Well

India Equity Strategy Report - Quarterly flipbook: Q3 - upgrades galore! - HDFC Securities

Earnings Wrap Q3FY21: Encouraging quarter, broad based recovery under way!

Shilpa Medicare - USFDA import alert at Jadcherla unit - ICICI Securities

Q3FY21 Company Update - Indian Bank - ICICI Direct

Quant Pick - Torrent Power - ICICI Direct

GE T&D India - Strong cashflow - ICICI Securities

Q3FY21 Result Update - Graphite India - ICICI Direct

Q4CY2020 Result Update - Varun Beverages - ICICI Direct

Q3FY21 Company Update - NBCC Ltd - ICICI Direct

Quant Pick - United Breweries - ICICI Direct

Q4CY2020 Result Update - Nestlé India - ICICI Direct

Q3FY21 Result Update - Time Technoplast - ICICI Direct

Healthy Business Performance Puts ITC Stock Recovery on Track

Gold - Feb 17, 2021 - Reliance Securities

Maintain REDUCE on Nestle India - Steady revenue show; employee cost dents margins - HDFC Securities

Varun Beverages - Q4 CY20 Result and Concall Update - YES Securities

Nestle India - Q4 CY20 Result Update - YES Securities

Reiterate BUY on JMC Projects - Some hits, some misses - HDFC Securities

Varun Beverages - Strong volumes; higher margins - ICICI Securities

Computer Age Management Services - Play on industry AUM growth - ICICI Securities

Nestle India - Just a tad underwhelming (given the high benchmarks expected from Nestle India) - ICICI Securities

NHPC - Earnings robust; projects on track - ICICI Securities

Maintain BUY on ITD Cementation - Gradual recovery shaping up - HDFC Securities

Techno Electric & Engineering - Strong margins, healthy growth outlook - ICICI Securities

Time Technoplast - Outlook upbeat; execution remains key - ICICI Securities



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

disclaimer copyright © 2005 - 2020