Logistics Stock Under ₹50 to Buy Now for an Upside of 45%; Recommended by Jefferies
Logistics isn't the flashiest corner of the market, but it keeps everything moving, and investors have started looking at it again as more cargo shifts from roads to rails. Some stocks in this space have still been beaten down, even when the business underneath looks okay. One such name is hanging close to its yearly low, and a brokerage thinks it's worth a second look.
Gateway Distriparks shares closed at ₹50.85, up 1.01% from the previous close of ₹50.34. The 52-week high is ₹65.90 and the low is ₹48.15, so the stock is sitting a lot closer to the bottom of that range. Market cap is around ₹2,540 crore, and the P/E on a consolidated basis is about 10.14.
Gateway Distriparks is an integrated multimodal logistics company. It runs rail-linked inland container depots, container freight stations, warehouses and trailers, with a pan-India rail licence. It also owns 50.01% of Snowman Logistics. In FY26, consolidated total income was ₹2,229 crore.
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Jefferies on Gateway Distriparks
Jefferies maintained its 'Buy' rating on the stock with a target price of ₹74, which points to an u pside of about 45%. That's well a bove where the stock trades now. The brokerage expects the rail freight business to gain from the bigger container transportation opportunity.
For the September 2026 quarter, it expects revenue to rise 3% year-on-year and earnings before interest, taxes, depreciation and amortisation (EBITDA) to go up 8%. EBITDA margin is seen at 22.2%, against 21.2% a year earlier. Jefferies also says rail freight volumes should keep throwing up chances, though tough competition and how India's wider container rail network performs will matter for the sector.
Flat Income, Weaker Profit
In the June 2026 quarter, consolidated total income was ₹553.7 crore, almost the same as ₹554.1 crore a year ago. EBITDA slipped 1% to ₹121.5 crore and margin came in at 21.9%, compared to 22.2% last year. Here's the odd bit though. Profit before tax, before one-offs, fell only 3% to ₹69.3 crore, but profit after tax dropped 18% to ₹51.3 crore.
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The reason is tax. The tax bill almost doubled to ₹19.6 crore from ₹9.6 crore, because the company moved to the new tax regime from April 2026 and the rate is now 25.17% against 9.57% last year, when old tax credits helped. The company says actual cash tax paid barely moved, 18.88% against 17.47%. So the business didn't get much worse, the tax line did. There was also a small ₹1.6 crore one-time gain from reversing an earlier labour code provision.
The Core Rail and Terminal Business
Leave Snowman out and the core business handled 1,83,867 TEUs in the quarter. A TEU is just a twenty-foot container, the standard way of counting cargo volumes. That's a bit lower than 1,87,569 a year ago. Core revenue was ₹373 crore against ₹389 crore, and EBITDA was ₹92 crore against ₹98 crore.
Revenue and EBITDA earned per TEU were also the lowest in the 13 quarters the company showed, which isn't a great look. Still, core margin stayed at about 25%, and the company says it has held a 24-27% band for 13 quarters in a row. Core revenue for FY26 hit an all-time high of ₹1,607 crore.
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Snowman Logistics, The Cold Chain Arm
Gateway holds 50.01% in Snowman Logistics, India's largest integrated temperature-controlled logistics player. It stores and moves frozen food, medicines, vaccines, seafood, dairy and e-commerce goods. In the June quarter, Snowman brought in ₹177.1 crore revenue, ₹29.3 crore EBITDA and ₹4.6 crore net profit.
Now look at that mix. Snowman is roughly a third of consolidated revenue but only about 9% of the profit, so it's a thin-margin business for now. The company says it will keep expanding into new locations and keep adding dedicated warehouses for e-commerce platforms.
Plans Ahead
The new Ankleshwar multi-modal logistics park got Customs permission for export-import cargo, and operations were to begin from September 2026. At Indore, more land was bought, taking the site to 26.4 acres, and that terminal should start in 2028. Two more train sets (rakes) are on the way, taking the fleet from 35 to 37.
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It's also adding 100 domestic containers of 40 feet, more electric trailers, and a 100,000 sq ft warehouse at Piyala. Cash is going back to shareholders too, with an interim dividend of ₹1.25 per share, after ₹3.25 for FY26 including a special payout. Promoters raised their stake through market purchases last year and hold 33.92%.
Bottom Line
Honestly, the picture is mixed. Volumes are a touch soft and per-container earnings are at multi-quarter lows, but most of the profit fall came from tax, not operations. The stock trades near 10 times earnings and the company is adding capacity at Ankleshwar and Indore. Jefferies' numbers are only estimates, so the September quarter results will tell us more. Do your own homework before acting.