Gati on the rise

Gati has been doing pretty well over the past couple of days and today too, it figures out currently amongst the top five gainers on the BSE. The stock is up 4% at Rs.212.50, close to its intra day high of Rs.214.50 though volumes remain pretty muted- indicating that it is probably not a frenzied buying but informed buying.

The news is that institutional investors have found a new ‘sunrise’ in logistic companies as they expect this sector to reap immense benefits from the booming e-commerce business. And once the GST Bill gets going, this sector could emerge as one of the biggest gainers. FII stake in Gati, sequentially has risen from 8.58% to 9.33% and that of Domestic institutions from 0.21% to 0.51%.

And Gati has been doing well operationally too though Q4FY15 performance was a bit tepid. It posted a consolidated net profit of Rs.11 crore v/s Rs.12 crore (YoY), a 7% decline. Total income rose from Rs.416 crore to Rs.384 crore, a fall of 8.5%.

The company has invested in the last mile delivery capacity  and is now serviced by a fleet of 1350 vehicles, serving some 20,000 pin codes. The company has set itself a target of delivering 1 milion packages per day by 2020.