Shares of a logistics company as well as its promoter company jumped more than 5 percent on Thursday’s early trades to reach their new 52-week highs respectively. This happened after the promoter company bought a stake in it.
Snowman Logistics gained 5.81 percent on Thursday to reach a fresh 52-week high of ₹ 56.30 apiece after Gateway Distriparks, its promoter bought 11 lakh shares or a 0.66 percent stake in the company on August 23, 2023, at ₹ 53.36 per share, as per the Bulk deals data available on the National Stock Exchange (NSE). This takes the transaction value to nearly ₹ 5.87 crores.
Snowman Logistics is a leading temperature-controlled logistics company that offers warehousing and distribution services. It has facilities in Mumbai, Bangalore and Chennai.
Its promoter, Gateway Distriparks is an inter-modal logistics service provider. The company’s share price climbed 5.81 percent on Thursday to reach a 52-week high of ₹ 91.00. As of the June quarter, Gateway Distriparks used to hold 6,72,54,119 shares or a 40.25 percent stake in the company.
In the past year, the shares of snowman logistics have risen by 66.81 percent from ₹ 33.75 to ₹ 56.30 apiece. Meanwhile, the shares of Gateway Distriparks rose by 33.73 percent from ₹ 68.05 to ₹ 91.00 apiece.
Snowman Logistics is a microcap stock with a market capitalization of ₹ 894 crores. It has a low return on equity of 3.18 percent, but an ideal debt-to-equity ratio of 0.61. Its shares were trading at a price-to-earnings ratio of 60.11 which is higher than the industry P/E of 17.23, indicating that the stock is undervalued as compared to its peers.
With a market capitalization of ₹ 4,297 crores, Gateway Distriparks is a small-cap company. It has a low return on equity of 14.06 percent and an ideal debt-to-equity ratio of 0.30. Its shares were trading at a price-to-earnings ratio (P/E) of 17.40, which is almost at par with the industry P/E of 17.23. Further, it has a dividend yield of 1.60 percent.
Written by Simran Bafna
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