Stock watch: Gateway Distriparks

Gateway Distriparks (GDL) has an interesting growth story. The scrip is currently trading at Rs 216.3, after hitting a life time high of Rs 234, in yesterday's intraday trade. The scrip had closed yesterday at 215.15, up 5.13 per cent.

In the past one month, it had appreciated about 10 per cent. The port-based logistics facilitator GDL, has tied up with Container Corp (Concor) for business development and for EXIM Trade.

The approvals received for its Garhi ICD, from the Northern Railways is expected to boost the company's bulk cargo handling. With increasing containerisation and company's presence at all the major ports, the company is poised for a strong growth in the future, according to analysts.

The sales of the company is expected to grow more than three fold in the next two years. The valuations made by one of the major brokerages in the country projects huge growth in the net profit of the company in the next few years. The company had posted a net profit of Rs 346 million in FY05.

The company had come out with an IPO comprising of a fresh issue of 11 million equity shares and an offer for sale of 10 million existing equity shares, in March this year.

During the IPO, the company director said that the company would use the money to repay their bridge loan from IDGC and to partly finance the expansion of its existing facilities, apart from funding acquisitions.