Stock Analysis

Gateway Distriparks Limited (NSE:GATEWAY) Just Reported And Analysts Have Been Lifting Their Price Targets

NSEI:GATEWAY
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Last week, you might have seen that Gateway Distriparks Limited (NSE:GATEWAY) released its third-quarter result to the market. The early response was not positive, with shares down 2.3% to ₹109 in the past week. Results overall were respectable, with statutory earnings of ₹1.26 per share roughly in line with what the analysts had forecast. Revenues of ₹3.9b came in 2.2% ahead of analyst predictions. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Gateway Distriparks

earnings-and-revenue-growth
NSEI:GATEWAY Earnings and Revenue Growth February 19th 2024

Taking into account the latest results, the current consensus from Gateway Distriparks' 14 analysts is for revenues of ₹17.7b in 2025. This would reflect a meaningful 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 10.0% to ₹5.91. In the lead-up to this report, the analysts had been modelling revenues of ₹17.8b and earnings per share (EPS) of ₹6.00 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 9.8% to ₹124. It looks as though they previously had some doubts over whether the business would live up to their expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Gateway Distriparks analyst has a price target of ₹142 per share, while the most pessimistic values it at ₹101. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Gateway Distriparks'historical trends, as the 12% annualised revenue growth to the end of 2025 is roughly in line with the 13% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% annually. It's clear that while Gateway Distriparks' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Gateway Distriparks going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Gateway Distriparks that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.