GATI Ltd: IT should benefit from the rate cut by the RBI
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Gati Limited (www.gati.com) is pioneer and leader in Express Distribution and Supply Chain Solutions in India. Having started as a cargo management company in 1989, Gati Ltd has grown into an organization with more than 3500 employees and an annual turnover of Rs.12094 million (249 million USD) covering 622 out of total 626 districts in India. Gati Ltd has over 4500 vehicles on the road excluding their fleet of refrigerated vehicles, container shipping vessels and world class warehousing facilities across India. Furthermore, Gati Ltd has a strong market presence in the Asia Pacific region and SAARC countries. Gati Ltd has offices in Singapore, Beijing, Shanghai, Qingdao, Hong Kong, Bangkok, Kuala Lumpur and Dubai and the SAARC countries.
Gati Ltd and Kintetsu of Japan's tie-up is close to getting the Foreign Investment Promotion Board (FIPB) nod. The board is likely to take it up at its next meeting. This will signal the final countdown for the new entity, Gati-Kintetsu Express, to be in place in about a month's time, emerging as a major player in the domestic express distribution business.
Key Highlights of JV:
Gati Ltd and Kintetsu of Japan's tie-up is close to getting the Foreign Investment Promotion Board (FIPB) nod. The board is likely to take it up at its next meeting. This will signal the final countdown for the new entity, Gati-Kintetsu Express, to be in place in about a month's time, emerging as a major player in the domestic express distribution business.
Key Highlights of JV:
- JV is for the express distribution and supply chain business.
- Gati Ltd to hold 70%, while KWE 30%
- KWE to invest Rs.2677 mn for 30% stake in the JV.
- Gati Ltd balance to be significantly deleveraged.
- JV to be consolidated in the Financials of Gati Ltd.
For more on the Joint Ventures, please CLICK HERE. In December, 2011, Gati Ltd informed the BSE/ NSE that it had successfully closed the re-issue of its Foreign Currency Convertible Bonds ("FCCBs") aggregating to USD 22,182,000 as on December 12, 2011 with Goldman Sachs International---For more details on this issue, please CLICK HERE.
Therefore, the shares of the company are still highly undervalued at the CMP of Rs.36.55. The scrip is already looking excellent on the charts, the next targets seems to be Rs.39-41-44. The scrip was recommended to the Paid Group members, at Rs.33.5 only some days back.
Therefore, the shares of the company are still highly undervalued at the CMP of Rs.36.55. The scrip is already looking excellent on the charts, the next targets seems to be Rs.39-41-44. The scrip was recommended to the Paid Group members, at Rs.33.5 only some days back.
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