European tie-up offers solace to Gati stock

European tie-up offers solace to Gati stock

Gati was trading flat at Rs 122.85 on BSE at 13:45 IST after the company said it entered into a strategic alliance with Amsterdam-based General Logistics Systems to provide easy access for Gati's customers in Europe.

The stock recovered from the sessions low of Rs 117. The company made this announcement during trading hours today, 25 February 2008.

Meanwhile, BSE Sensex was up 43.63 points or 0.25% to 17,392.70.

On BSE, 16,087 shares were traded in the counter. The scrip had an average daily volume of 1.08 lakh shares in the past one quarter.

The stock hit a high of Rs 127.90 and low of Rs 117 so far during the day. The stock had a 52-week high of Rs 215.20 on 2 January 2008 and a 52-week low of Rs 80 on 19 June 2007.

The small-cap scrip had underperformed the market over the past one month till 22 February 2008, declining 6.40% compared to the Sensex’s return of 0.74%. It had outperformed the market in the past one quarter, rising 4.78% compared to Sensex’s decline of 7.98%.

The company’s current equity is Rs 15.61 crore. Face value per share is Rs 2.

The current price of Rs 122.85 discounts its Q3 December 2007 annualized EPS of Rs 6.59, by a PE multiple of 18.64.

General Logistics Systems (GLS), one of the three largest parcel service providers in Europe. GLS has reported revenue of 1.6 billion euros for financial year (FY) 2006-07. GLS handles around 311 million parcels for 2.22 lakh customers in 36 European States through 17,800 vehicles and 32 transshipments point, 655 depots and 12000 employees.

Gati’s net profit rose 193.2% to Rs 12.49 crore on 3.2% fall in net sales to Rs 134.53 crore in Q2 December 2007 over Q2 December 2006.

Gati's principal activity is to handle, transport and warehouse cargo. The group operates in three segments namely express distribution and supply chain, fuel stations and coast-to-coast. The group has opened offices in Singapore, Hong Kong, China, Sri Lanka, Nepal and Myanmar.