Shares of c zoomed 8.5% on Thursday’s early trades to reach an intraday high of ₹ 126.75 apiece on the National Stock Exchange (NSE) after the company announced its business update. At 01:39 PM, its shares were trading at ₹ 122.90 apiece, up 5.18%.
Gati is engaged in express distribution and supply chain solutions through surface, air and rail logistics, supply chain management (SCM), E-commerce logistics, freight forwarding and cold chain – transportation and warehousing. In addition, it operates fuel stations across various locations.
According to an exchange filing, the company’s total volume, including surface and air express, for the month of May 2023 was up 8%, compared to April 2023 and up 1%, compared to May 2022. It said that its May volumes continued to show an improving trend and that it has started preparations for the upcoming festive season.
“Volume remained healthy y-o-y despite a strong base. Q1FY23 was a very strong quarter as market dynamics led to certain consolidation that benefitted few players leading to exceptional volumes in the base quarter,” it added.
With a market capitalization of ₹ 1,521 crores Gati Ltd is a small-cap stock. It has a negative return on equity of 1.58% and an ideal debt-to-equity ratio of 0.52. Its shares were trading at a price-to-earnings ratio (P/E) of 53.51, which is significantly higher than the industry P/E of 17.67, indicating that it might be overvalued as compared to its peers.
The company’s promoters hold a 53.11% stake in it, followed by retail investors with 44.61%, foreign institutions with 2.24% and domestic institutional investors with 0.04%.
Written By Simran Bafna
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