Gateway Distriparks Limited

Industrials — Integrated Freight & Logistics · NSE

₹50.30−₹0.14 (−0.28%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Gateway Distriparks Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Gateway Distriparks Limited, together with its subsidiaries, provides integrated inter-modal logistics services in India.

IndustryIntegrated Freight & Logistics

SectorIndustrials

Employees509

Annual revenue₹2,209 Cr

How does it make money?

Turns over ₹2,209 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 509 employees supports ₹4.34 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin22.3%

Net margin11.6%

Revenue / employee₹4.34 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Little sign of one

Returns on capital of 11.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE11.0%

ROE11.2%

Peer median ROE15.2%

What is the outlook?

4 analysts covering the stock expect revenue to grow about 68.5% and earnings to grow about 19.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+68.5%

Est. earnings growth+19.8%

Analysts4

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +56% while net margin moved -32% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+56%

Margin effect-32%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Revenue CAGR of 15.9% — compounding well above nominal GDP
✗ Profit CAGR of only 2.1%
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows
✗ Latest-year revenue growth of -0.2% is below the longer-term trend — momentum is fading
✗ Profit fell 18.3% in the latest year

Quality vs. Valuation

Company Quality

66/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

77/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

10.3x

3Y Median

12.9x

40 monthly readings · mean 14.0x · range 6.8x–23.4x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 20% below its 3y median of 12.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 88% below the peer median of 88.8x.

vs. its own history

Cheap

12.9x median over 40 months · -20%

vs. sector peers

Cheap

88.8x median of 3 peers · -88%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

10.3x

P/B

1.09x

EV/EBITDA

6.3x

PEG

4.79

Dividend Yield

3.98%

What's Good / What's Bad

🟢 What's Going Well4

Cash generation is improving
Free cash flow is up 225% over 3 years.
Valuation below its historical average
At 10.3x the stock trades 20% below its own median of 12.9x.
Very low debt
Debt/Equity of 0.25x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 27.6% to 22.3% over 3 years.
Return on capital is falling
ROCE has declined from 13.4% to 11.0% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 94% against revenue growth of 56% — customers are taking longer to pay.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.3 points, from 27.6% to 22.3%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 9.1x to 5.8x.
🟡Receivables growing faster than salesFinancial
Receivables up 94% against revenue up 56% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 20% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 88% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹353 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 27.6% to 22.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 94% against revenue up 56%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 12% a year✓ 15.9% CAGR
Latest reported year was -0.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 20%✓ 22.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹353 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 11.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹2,513 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.3x

Cheap

Cheap against the generic band

P/B Ratio

1.09x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹4.9

Profitable

Profitable on a per-share basis

ROE

11.2%

Moderate

Moderate capital efficiency

ROCE

11.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.25x

Low

Conservative leverage

Revenue Growth (YoY)

-0.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

-18.3%

Falling

Profits are shrinking

Dividend Yield

3.98%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹353 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹50.3

P/E (Forward)

9.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

14.3%

Average

Average margins

Net Margin

11.0%

Good

Strong bottom-line conversion

Current Ratio

1.07

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.20

Defensive

Steadier than the market

52W Range Position

13%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

51.6 / 53.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

32.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,419 Cr	₹1,534 Cr	₹1,678 Cr	₹2,209 Cr	+15.9%
EBITDA	₹392 Cr	₹402 Cr	₹155 Cr	₹493 Cr	+8.0%
EBITDA Margin	27.6%	26.2%	9.3%	22.3%	—
PAT (Net Profit)	₹240 Cr	₹256 Cr	₹371 Cr	₹256 Cr	+2.1%
EPS	₹4.8	₹5.12	₹7.42	₹5.12	+2.2%
ROE	13.5%	13.3%	16.8%	11.2%	—
ROCE	13.4%	13.1%	14.2%	11.0%	—
Total Debt	₹512 Cr	₹497 Cr	₹709 Cr	₹637 Cr	+7.6%
Free Cash Flow	₹108 Cr	₹246 Cr	₹369 Cr	₹353 Cr	+48.2%

🟢 Revenue has grown at 15.9% a year over 3 years.

🟢 EBITDA has grown at 8.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 27.6% to 22.3% over 3 years (-5.3 pts).

🟢 PAT (Net Profit) has grown at 2.1% a year over 3 years.

🟢 EPS has grown at 2.2% a year over 3 years.

🔴 ROE has fallen from 13.5% to 11.2% over 3 years (-2.4 pts).

🔴 ROCE has fallen from 13.4% to 11.0% over 3 years (-2.4 pts).

🔴 Total Debt has grown at 7.6% a year over 3 years.

🟢 Free Cash Flow has grown at 48.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,522 Cr

Total Liabilities

₹976 Cr

Total Debt

₹637 Cr

Cash & Equivalents

₹19 Cr

Operating Cash Flow

₹469 Cr

Capex

-₹116 Cr

Shareholding (proxy)

Institutional Holding

33.1%

Insider Holding

33.9%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

11 Aug 2026

Analyst Consensus

Recommendations

5 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹80.2

+59.4% vs CMP

Target Range

₹67 – ₹94

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 positive4 mixed1 general

Gateway Distriparks (NSEI:GATEWAY) Stock Forecast & Analyst Predictions

Simply Wall Street, 06 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Earnings call transcript: Gateway Distriparks Q1 2026 shares fall on weak margins

Investing.com India, 05 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Gateway Distriparks Q4 FY26 Results: Earnings Call Highlights & Financial Performance

scanx.trade, 08 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Gateway Distriparks Share Price Gains 0.79% After Q1 FY27 Results

Univest, 06 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Dividend Alert: Gateway Distriparks Announces First Interim Dividend, Check Record Date

NDTV Profit, 05 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Gateway Distriparks sticks to FY27 growth outlook as new terminals, domestic business drive volumes

CNBC TV18, 06 Aug

Watch Items

Revenue growth is negative (-0.2%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong13.3/20

🟢Financial HealthStrong16.5/20

🟡GrowthModest10/20

🟢ProfitabilityStrong9.9/15

🟢ValuationAttractive12.8/15

🟡RiskModerate5.2/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 12% a year15.9% CAGR
✓EBITDA margin holds above 20%22.3%
✓Free cash flow remains positive₹353 Cr
✓Debt / EBITDA stays below 2x1.3x
✓ROCE stays above 8%11.0%