Logistics play for multi bagger returns

This a transport and logistics company which multiple businesses and were delisted from stock exchanges earlier. In March 2022 , the company got relisted , the three group companies – Gateway Distriparks Ltd., Gateway Rail Freight Ltd and Gateway East India Pvt. Ltd. have all merged into a single entity.

It has a network of 9 Inland Container Depots and Container Freight Stations strategically located across the country, operating a fleet of 31 trainsets along with 500+ trailers for transportation between its facilities and maritime ports. The company offers general & bonded warehousing, rail & road transportation, container handling services and other value added services. Through Snowman Logistics, the group also operates India’s largest temperature controlled logistics network

Stock Name : Gateway Distiparks

Recommendation : Buy & Accumulate – At current price approx. 65 , we expect a forward P/E of 30 and a price of 149 170 in 18 months from today.

Investment Rationale Summary : QuestFT Algo Score ( 7/9 )

  • Over 19% ROE & ROCE in price sensitive logistics business.
  • Net Profit of over 40% CAGR ( Last 5 years )
  • 50% of the entire stocks are with DII and FII ( Long term players)
  • Healthy operating margins with comfortable debt repayments
  • Trading at a P/E of 14 on trailing twelve months basis.
  • The logistics sector will continue to see uptick in demand due to opening of markets
  • Multiple modes of logistical supports with advance technologies / warehouses in place to meet demands.

P.S We were the one of the early advisors to recommend REDINGTON which was also a logistics play and it gave 200% returns since our recommendation , 3 years ago

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