Six Month Call

Gati Corporation

CMP: 106

Target 1: 133

Target 2: 140

Current Quote of Gati Corporation

Gati is quite a nice stock to invest in. Logistics is a very high growth sector and it is one very well established company in this industry. It is a leader in express cargo management and doing very well. Both revenue and net profit have increased substantially in the year ending June 2007. The company is expanding capacity by leasing out 5 more freight names, increasing number of ships from 3 to 5 and also doubling their warehousing capacity. They have also forayed into transportation of perishable goods to take advantage of the boom happening in the organised retail industry. In this regard, they have taken over Kausar India, a Delhi based company."

They also have international offices. They have a strong presence in China; they are increasing their footprint further by forging new alliances and JVs. Besides China, they also have a presence in other countries like Singapore, Hong Kong, Thailand, Dubai, Mauritius. With all this and in the background of some high growth in logistics in India, it is expected that their revenue will be more than double in the next two years."

Though the target mentioned are in view of six month perspective, however, if an investor wants to stay longer, I think from a two to three year perspective, you can expect even better returns from this stock."

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