MOSL: GATEWAY DISTRIPARKS (Buy)-Rail margins impacted-Maintain Buy
​Gateway Distriparks: Rail margins impacted; Maintain Buy
(gdpl IN, Mkt Cap USD0.4b, CMP INR249, TP INR310, 25% Upside, Buy)
- GDPL reported EBITDA (Rail + CFS) of INR523m (est. of INR569m; -8% YoY, -11% QoQ). PAT (before associate/minority interests) of INR223m (-6% YoY, -13% QoQ) was above our estimate of INR209m due to lower interest cost at INR61m (est. of INR81m; +61% YoY, +21% QoQ) and a lower tax rate. Management has started accounting for Blackstone’s 49% stake in Gateway Rail from FY17 (FY16 numbers are restated for Blackstone’s stake).
- Rail profitability impacted by higher EXIM imbalance
- -Rail reported EBITDA of INR331m (est. of INR376m; -5% YoY, -3% QoQ).
- -Container volumes were 57,641TEU (est. of 54,472TEU; +14% YoY, +6% QoQ).
- -Rail realization stood at INR37,161/TEU (+2% YoY, +8% QoQ). EBITDA/TEU declined 17% YoY (-8% QoQ) to INR5,736 (est. of INR6,911), led by increased share of 40 feet containers (45% from 40%), higher discounts driven by increased competitive intensity and increased EXIM imbalance.
- CFS volumes impacted by implementation of DPD at JNPT
- -Consol. CFS EBITDA stood at INR192m (in-line; -12% YoY, -22% QoQ).
- -Consol. volumes were 91,095TEU (est. of 86,895; +7% YoY, -7% QoQ).
- -Realizations stood at INR10,261/TEU (est. of INR9,144; +20% YoY,+1%% QoQ), while EBITDA/TEU was INR2,110 (est. of INR2,212; -18% YoY; -16% QoQ).
Gateway Distriparks Limited is an integrated logistics facilitator. The Company's principal business activities include storage and warehousing, which includes general merchandise warehouses and warehousing of furniture, automobiles, gas and oil, chemicals and textiles. It also includes storage of goods in foreign trade zones. Its segments include Container Freight Station, which includes common user facilities located at various sea ports in India, offering services for handling (including related transport), temporary storage of import/export laden and empty containers, and cargo carried under customs control, and Rail Logistics, which includes transportation by rail, storage, handling of the containers and related transportation by road. It is also engaged in business of container-related logistics. Its primary business is to operate Container Freight Stations, which are facilities set up for the purpose of in-transit container handling, examination and assessment of cargo.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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