Gateway Distriparks
Gateway Distriparks
CMP: Rs 116.85
Target price: Rs 175
Merrill Lynch has retained its buy rating on Gateway Distriparks, with a price Target of Rs 175. “GDL is going ahead with its plans to raise funds for Rail Freight subsidiary in which it currently owns 85%; the deal is expected to be completed in 1QFY09. Infusion of funds by private equity would provide a benchmark valuation for the company and could potentially re-rate the stock,” the Merrill Lynch note to clients said.
“Expansion on container rail business is on track and this is expected to lead to significant revenue growth in FY09 and FY10. However, concerns on profitability remain during the ramp-up phase,” the note added
