Synopsis: Gateway Distriparks is in focus after ICICI Securities expects its stock price to rise by a staggering 53% citing in-line performance in Q2, market share gains in different regions, upcoming W-DFC connectivity, and operational efficiency improvements.
The shares of this leading inter-modal logistics service provider are in focus after ICICI Securities expects the stock to rise significantly from its current level. In this article, we will try to understand the rationale behind this uptick.
With a market capitalization of Rs 3,065 crore, the shares of Gateway Distriparks Ltd are currently trading at Rs 61.26 per share, up by 0.70 percent from its previous day’s closing price of Rs 60.85 per share. In the last one year, the stock has corrected by over 29 percent, as compared to NIFTY 50’s positive return of 8 percent.
Analyst Comments
Leading domestic brokerage, ICICI Securities, has maintained a “Buy” rating on the stock and has fixed a target price of Rs 94 per share, signalling an upside potential of 53 percent from its current market price.
The brokerage cited that Gateway Distriparks (GDL) recorded an in-line performance in Q2 FY26, with consolidated revenue and profit broadly matching the set expectations.
It cited that the rail business volume of GDL increased by 9.2 percent year-on-year (YoY), whereas the CFS (Container Freight Station) division experienced a 2.6 percent YoY rise, indicating that the demand is steady. Besides this, the brokerage conveyed that the firm’s operating profit before interest, taxes, depreciation, and amortization (EBITDA) reached Rs 120 crore in line with consensus estimates, which is a positive indication of the firm’s steady operational execution.
ICICI Securities also expressed that various abnormalities that had affected the first quarter of the year had been resolved, and hence, overall efficiency had significantly improved, as evidenced by the higher EBITDA per rail container (Rs 9,300 per TEU in Q2 vs. Rs 9,100 in Q1).
On the contrary, they revealed that CFS margins declined due to the incurrence of a one-time legal expense and higher maintenance costs. Moreover, the brokerage stated that double-stacking activities, which ultimately result in cost savings, rose to 41 percent during the quarter from 39 percent in the previous quarter, thus reflecting a gradual move towards stabilizing operations.
ICICI Securities also stated that GDL’s market share had been enhanced in the major areas of Ludhiana and Uttarakhand while the company continues to be the dominant leader in the NCR region. The management is confident of achieving a volume growth of 10-15 percent in FY26, mainly because of improved global and domestic economic outlook, new trade deals, and the forthcoming Western Dedicated Freight Corridor (W-DFC) connection to JNPT port that is expected by March 2026.
In addition, the brokerage suggested that as soon as the W-DFC linkage is in place, it can be a potential game changer, wherein there will be a significant shift from road to rail transport, followed by an increase in freight volumes and profitability of GDL. The management’s intention of North India rail-linked ICD network expansion and doubling the efficiency of double-stacking are expected to be the future quarters’ margin drivers as well.
In conclusion, ICICI Securities believes that Gateway Distriparks (GDL) is well-positioned to benefit from India’s growing shift from road to rail logistics, supported by upcoming W-DFC connectivity, market share gains, and operational efficiency improvements like double-stacking and more.
Gateway Distriparks Limited (GDL) is an India-based top-tier logistics company that has operations in three broad areas: rail-linked Inland Container Depots (ICDs), Container Freight Stations (CFSs), and cold chain logistics. GDL is operating the major CFSs of cities like Mumbai, Chennai, Kochi, and Visakhapatnam, and it is running over 34 trains and 550 trucks for the transportation of goods between ports and the inland hubs.
Besides this, through its subsidiary Snowman Logistics, it is providing temperature-controlled warehousing and cold storage services all over India; thus, GDL is becoming a single point of contact for integrated logistics that is complete and hassle-free.
Written by Satyajeet Mukherjee
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