Gateway Distriparks (GDL) is the only logistics facilitator in India, with 3 verticals which are synergistic and capable of being interlinked – container freight stations (CFS), inland container depots (ICD) with rail movement of containers to major maritime ports and cold chain storage & logistics.
GDL operates four container freight stations: 2 at Navi Mumbai, 1 at Chennai and one at Visakhapatanam with capacity of over 6 lakh TEUs. A new CFS at Kochi will be operational by Q4 2011-12. These CFSs offer transportation and storage, general and bonded warehousing, empty handling and several value-added services. The CFS business brings in 40% of the turnover and 94% of profit.
GDL’s rail operations are handled by a subsidiary, Gateway Rail Freight, in which the Blackstone Group of the USA has invested private equity through Blackstone GPV Capital Partners (Mauritius) V-H.
Gateway Rail operates rail-linked facilities at Garhi-Harsaru (Gurgaon, Haryana), Ludhiana (Punjab) and Kalamboli (Navi Mumbai). It owns and operates a fleet of 21 trains and above 235 road trailers at its rail-linked terminals. Exim volumes are most contributors to the overall segment revenue. Exim volumes are also higher contribution to margins.
The third vertical consists of cold chain logistics solutions out of 19 locations in India through a subsidiary, Snowman Logistics, a leading logistics services provider and India’s first cold-supply-chain company with a nationwide network connecting more than 100 cities and over 4,400 outlets.
Investment Rationale,,,!
^ Pan India operations favor GDL in capturing the growing demand for container traffic
^ Improved financial performance – Q3 results analysis
^ Capex for expansion
^ Growth drivers – Container freight stations and Rail business
^ Consistent dividend player
Valuations,,,!
The company is currently trading close to it 5 year average PE. At CMP the stock trades at 12.2x and 10.7x for its FY 12E and FY 13E earnings. On better outlook, the demand from the industry and expansion plans on track the company has huge potential for growth going forward. We see a price target of Rs. 190 for next 15 to 18 months.
Mr. A. K. Prabhakar
Senior Vice President - Equity Research
Anand Rathi
4th Floor, Silver Metropolis, Jai Coach Compound, Opposite Bimbisar Nagar, Goregaon (East), Mumbai - 400 063.
Tel No: + 4001 3700 Direct: + 4001 3999, Fax No: + 4001 3770
Website: www.rathi.
GDL operates four container freight stations: 2 at Navi Mumbai, 1 at Chennai and one at Visakhapatanam with capacity of over 6 lakh TEUs. A new CFS at Kochi will be operational by Q4 2011-12. These CFSs offer transportation and storage, general and bonded warehousing, empty handling and several value-added services. The CFS business brings in 40% of the turnover and 94% of profit.
GDL’s rail operations are handled by a subsidiary, Gateway Rail Freight, in which the Blackstone Group of the USA has invested private equity through Blackstone GPV Capital Partners (Mauritius) V-H.
Gateway Rail operates rail-linked facilities at Garhi-Harsaru (Gurgaon, Haryana), Ludhiana (Punjab) and Kalamboli (Navi Mumbai). It owns and operates a fleet of 21 trains and above 235 road trailers at its rail-linked terminals. Exim volumes are most contributors to the overall segment revenue. Exim volumes are also higher contribution to margins.
The third vertical consists of cold chain logistics solutions out of 19 locations in India through a subsidiary, Snowman Logistics, a leading logistics services provider and India’s first cold-supply-chain company with a nationwide network connecting more than 100 cities and over 4,400 outlets.
Investment Rationale,,,!
^ Pan India operations favor GDL in capturing the growing demand for container traffic
^ Improved financial performance – Q3 results analysis
^ Capex for expansion
^ Growth drivers – Container freight stations and Rail business
^ Consistent dividend player
Valuations,,,!
The company is currently trading close to it 5 year average PE. At CMP the stock trades at 12.2x and 10.7x for its FY 12E and FY 13E earnings. On better outlook, the demand from the industry and expansion plans on track the company has huge potential for growth going forward. We see a price target of Rs. 190 for next 15 to 18 months.
Mr. A. K. Prabhakar
Senior Vice President - Equity Research
Anand Rathi
4th Floor, Silver Metropolis, Jai Coach Compound, Opposite Bimbisar Nagar, Goregaon (East), Mumbai - 400 063.
Tel No: + 4001 3700 Direct: + 4001 3999, Fax No: + 4001 3770
Website: www.rathi.
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