Shares of Gateway Distriparks jumped more than 4.5% after the logistics company announced a 1271% increase in net profit for the quarter ended September 2021. Gateway posted net profit of Rs 46.91 Crore in the second quarter of FY22 against Rs 3.42 crore reported in the corresponding quarter of last year. Sales jumped over 27.89% in the second quarter, from Rs 262 crore to Rs 335 crore year-on-year.

Gateway Distriparks is a Mumbai-based logistics company operating in three verticals, Container Freight Stations (CFS), Inland Container Depots (with rail movement), and Cold Chain Storage and Logistics . It is the parent company of Snowman Logistics, the leading provider of logistics services in India.

The company’s rail and CFS verticals recorded strong volume growth of 46% and 22%, respectively. So much so that volumes have rebounded beyond pre-COVID levels, said Prem Kishan Gupta, CMD CNBC-TV18.

“We are also seeing volume growth. All businesses are performing well except Automotive,” Gupta said.

Up to 6.11 lakh shares of the company had changed hands on BSE at 10:50 a.m. Volume jumped more than 30% from its two-week average daily volume of 18,410 shares. At the time, it was trading at Rs 268, up over 1.5%.

Share price history

Gateway Distriparks has given multi-bagger returns to its shareholders this year. The action started this year at Rs 121 and was trading at over Rs 268 higher on Friday in afternoon trading. It has jumped more than 180 percent in the past 12 months and 110 percent so far this year.

Earlier in October, leading investor Ashish Kacholia bought a new 1.54% stake in the company. Kacholia now owns 19 17,606 shares of the company, according to its shareholding model for the period July-September.

However, over the past five sessions, the stock has fallen almost 10 percent. It started this week at Rs 293 and dropped to Rs 265 on Thursday.

Brokerages see the bright side

Gateway Distriparks delivered better than expected operational performance in the second quarter of FY22, driven by strong volume growth in the CFS and rail verticals, BNP Paribas’ Sharekhan said in a report. The company also maintained its operational profitability in the rail sector.

The brokerage sees a 30 percent rise in the stock. It has a buy rating with a target price of Rs 347 for the share due to the growth in earnings.

“The company is expected to benefit from sustained growth in exports and imports and the benefits arising from the commissioning of DFC. It will also begin the next round of capacity expansion once the national logistics policy is defined,” he said. -he declares.

Snowman Logistics is expected to increase its capacity from 1.13 pellets to 2 lakh over three years and focus on high margin warehousing activities, he said.

Phillip Capital sees a rise of over 40 percent due to outperformance in the rail sector. He said the company performed better than expected with a strong recovery in volumes in rail. It has a target price of Rs 380, against the current market price of Rs 265.

At 1:13 p.m., shares of Gateway Distriparks listed at Rs 265, more than one percent higher than BSE.

(Edited by : Ajay Vaishnav)


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