- Gateway Distriparks Ltd. (GDL) is a small operator in the rail freight business and cold chain storage and logistics.
- GDL reported good Q3 with good growth in rail freight volumes and EBITDA grew 26% YoY.
- GDL has sold its entire stake in Snowman logistics and Chandra CFS. GDL has substantially reduced its debt in FY20 and will further de-leverage with proceeds from sale.
- Dedicated Freight Corridor (DFC) would improve overall rail volumes, unit costs, speed and reliability of delivery while the pricing would be the same as railways.
- GDL remains a small but efficient operator in the rail freight business and is well positioned to benefit from DFC. Valuations are cheap with sharp deleveraging ahead. Stock is trading at 7x EV/EBITDA.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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