Q4FY21 Company Update - Gateway Distriparks - ICICI Direct

GDL's Q4FY21 revenues grew 17% YoY to Rs. 350 crore, led by 16% growth in the rail segment to Rs. 255 crore and 20% growth in the CFS segment to Rs. 96 crore. Rail volumes grew 15% YoY to 77772 TeUs and posted a record ~Rs. 9926/TeU EBITDA performance. Subsequently, absolute EBITDA grew 48% to Rs. 95 crore (led by EBITDA margin expansion by 566 bps to 27.2%). However, PAT grew 3x to Rs. 47 crore as a stronger operational performance was further supported by lower depreciation and interest expense.

Valuation & Outlook

The management expects the rail EBITDA to normalise at 8000-8500/TeU levels, going forward, and also, incur a capex of Rs. 200 crore towards building two satellite feeder terminals in the NCR region (that would augment higher market share for GDL in NCR). Stable revenue growth and enhanced margins would translate into strong FCF generation (>10% yield in FY23E) and debt reduction (D/E: 0.2x in FY23E). We expect RoCE augmentation of 500 bps over FY21-23E to 17.3%. Gateway Distriparks stays a structural long term growth story in the logistics landscape. We maintain BUY rating on the stock with a revised target price of Rs. 260 (19x FY23E EPS, earlier TP Rs. 240).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_GatewayDist_CoUpdate_Apr21.pdf

Shares of GATEWAY DISTRIPARKS LTD. was last trading in BSE at Rs.206.95 as compared to the previous close of Rs. 195.7. The total number of shares traded during the day was 141747 in over 5691 trades.

The stock hit an intraday high of Rs. 213.9 and intraday low of 195.2. The net turnover during the day was Rs. 28987798.

Source : Equity Bulls

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