Gateway Distriparks GDL - Stock Update.
Gateway Distriparks Ltd is one of the leading CFS players in the country with CFS at JNPT, Chennai, Vizag and Kochi. It also has two rail linked ICD at Garhi Hasaru near Delhi and at Ludhiana. GDL has category I rail license to run both EXIM and domestic private container trains and has 13 rakes as on date. It also runs cold chain business through Snowman Frozen Foods.
Allcargo Global logistics has Acquired 5.97% equity stake in GDL. Allcargo has acquired 6,095,223 equity shares of GDL constituting 5.97% of the total paid up capital from the open market through M/s. Sealand Terminals Pvt.Ltd., which is the wholly owned subsidiary of Allcargo. It paid Rs.300 mn for this stake. As of now the management of Allcargo has that it is purely a treasury investment and has clearly declined any synergy with GDL. As of December 2008, the promoters of GDL hold 45.6% in GDL.
Valuation:
At Rs.74, GDL trades at fair valuations of 1.2x book value, 8.6x earnings
and 5.6x cash earnings based on FY10E. The long term growth prospects of the company is positive due to increasing containerization, export import trade and company's presence at all the major ports, rail linked ICD, running of private container trains and expansion in booming cold chain business would keep its position stronger in the future as well.
Gateway Distriparks Ltd is one of the leading CFS players in the country with CFS at JNPT, Chennai, Vizag and Kochi. It also has two rail linked ICD at Garhi Hasaru near Delhi and at Ludhiana. GDL has category I rail license to run both EXIM and domestic private container trains and has 13 rakes as on date. It also runs cold chain business through Snowman Frozen Foods.
Allcargo Global logistics has Acquired 5.97% equity stake in GDL. Allcargo has acquired 6,095,223 equity shares of GDL constituting 5.97% of the total paid up capital from the open market through M/s. Sealand Terminals Pvt.Ltd., which is the wholly owned subsidiary of Allcargo. It paid Rs.300 mn for this stake. As of now the management of Allcargo has that it is purely a treasury investment and has clearly declined any synergy with GDL. As of December 2008, the promoters of GDL hold 45.6% in GDL.
Valuation:
At Rs.74, GDL trades at fair valuations of 1.2x book value, 8.6x earnings
and 5.6x cash earnings based on FY10E. The long term growth prospects of the company is positive due to increasing containerization, export import trade and company's presence at all the major ports, rail linked ICD, running of private container trains and expansion in booming cold chain business would keep its position stronger in the future as well.
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