Citigroup maintains buy on Gateway Distriparks, target price Rs 174

Citigroup has maintained buy rating on Gateway Distriparks in the long term with a target price of Rs 174.Shares of Gateway Distriparks ended up 11.5% at Rs 122.40 on Monday while BSE sensex closed 17.14 points down at 41,558.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 325.09 crore, down -11.88% from last quarter sales of Rs 368.91 crore and up 210.97% from last year same quarter sales of Rs 104.54 crore. The company has reported net profit after tax of Rs 17.92 crore in the latest quarter.


The company’s top management includes Mr.Arun Kumar Gupta, Mr.Bhaskar Avula Reddy, Mr.Ishaan Gupta, Mr.Prem Kishan Gupta, Mr.Shabbir Hassanbhai, Mrs.Mamta Gupta. Company has S R Batliboi & Co. LLP as its auditors. As on 30-09-2019, the company has a total of 108,728,049 shares outstanding.

Investment Rationale

Gateway Distriparks has entered into a share purchase agreement to sell its entire stake of 40.25% in Snowman Logistics for Rs 296 crore. The transaction will lead to faster deleveraging of Gateway's balance sheet. Gateway has also announced early redemption of debentures of Rs 500 million, said Citigroup. Future redemptions can lead to faster reduction in interest outgo.