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Motilal Oswal
GDPL (Buy)
CMP: ₹238.30
Target: ₹313
Gateway Distriparks Ltd (GDPL) is an integrated logistics player. Together with its
subsidiaries, it has a presence in key verticals such as rail, container freight station (CFS), and cold chain. Its subsidiary, Gateway Rail Freight (GRFL) is India’s largest private
sector Container Train Operator, with about 5 per cent market share. GDPL is one of India’s largest CFS players, with significant market share in JNPT and Chennai port. Another subsidiary, Snowman Logistics is the largest cold chain player in India, with a capacity of 98,500 pallets.
Key takeaways: a) With the commissioning of the Viramgam terminal, we expect the lead
distance of double stacking, particularly for containers transporting to JNPT,
to increase meaningfully, resulting in better margins. b) Management expects haulage savings of 2-4 per cent post stabilisation of the terminal. c) We estimate about 460 bps margin expansion over FY17-19 for the rail segment, with stabilisation of the Viramgam terminal in FY18.
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