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Phillip Capital
Gateway Distriparks (Buy)
Target: ₹185
CMP: ₹148.70
Consolidated revenue increased by 5 per cent -y-o-y to ₹313 crore (higher than estimates of ₹282 crore). EBITDA increased by 36.4 per cent y-o-y (+26.6 per cent q-o-q) to ₹82.60 crore, higher than estimates of ₹63.80 crore. EBITDA margins increased from 20.3 per cent in Q3-FY20 to 26.3 per cent in Q3-FY21.
Interest cost declined by 32.7 per cent y-o-y to ₹17.70 crore with debt repayment. PBT increased from ₹6.3 crore in Q3-FY20 to ₹34.60 crore. GDL reported profit of ₹32.70 crore in Q3-FY21 vs estimates of ₹11.40 crore.
Standalone revenue declined marginally by 1.6 per cent to ₹75.70 crore and reported 500 bps margins improvement to 27 per cent in Q3-FY21. Standalone EBITDA increased by 21 per cent y-o-y to ₹20.10 crore in Q3-FY21 and reported profit of ₹18.10 crore in Q3-FY21 vs loss of ₹8.30 crore in Q3-FY20 mainly due to other income of ₹21.60 crore with dividend from subsidiaries.
We have revised earnings considering strong operating performance and volume recovery. We have valued 41 per cent stake in snowman at ₹25 per share (20 per cent discount to Mcap). We have revised SOTP-based valuation with target price of ₹185 (earlier ₹125).
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