MOSL: GATEWAY DISTRIPARKS (Buy)-CFS volumes disappoint, focus on deleveraging
(GDPL IN, Mkt Cap USD0.2b, CMP INR133, TP INR160, 21% Upside, Buy)
** Gateway Distriparks (GDL) sold its entire stake in Chandra CFS in Chennai and Snowman Logistics in Dec'19. The company used the proceeds to redeem debentures of INR500m along with interest in Jan'20, and now plans to focus on the core business.
** We raise our FY21/22 EPS estimate by 12%/6%, and maintain our Buy rating. Commissioning of DFCC will be a key trigger for the company
CFS profitability impacted by lower volumes, Rail volumes healthy
** GDPL's YoY numbers are not comparable due to the consolidation of Gateway Rail from Mar'19.
** CFS volumes declined 15% YoY to 94,337 TEUs, while Rail volumes were up 8% YoY to 61,634 TEUs.
** Consol. revenue came in at INR2.9b (our estimate: INR3.2b; CFS: INR894m; Rail: INR2.1b) and EBITDA at INR642m (CFS: INR199m; Rail: INR443m). Note that the adoption of Ind-AS 116 led to an increase in EBITDA by INR123m.
** PAT stood at INR194m (our estimate: INR139m) as the company recorded an exceptional gain of INR80m related to the sale of the CFS terminal.
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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