Gati shares fall 4% this year; can they cross Rs 200 mark?

Shares of logistics solutions provider Gati Ltd have lost over 4% this year leaving medium-term investors guessing about the outlook of the stock. During the same period, Sensex has gained 7.85% or 4802 points and Nifty has added 8.78% or 1597 points.

In the last session, Gati stock closed 3.12% higher at Rs 137.05 on BSE. Market cap of Gati stood at Rs 1,784 creore. Total 1.35 lakh shares of the firm changed hands amounting to a turnover of Rs 1.85 crore on BSE.

In terms of technicals, the relative strength index (RSI) of the stock stands at 44.4, signaling the stock is neither oversold nor overbought. Gati has a one-year beta of 0.6, indicating very low volatility during the period. Gati shares are trading higher than the 5 day, 10 day, 200 day but lower than the 20 day, 50 day, 100 day moving averages.

Nuvama Institutional Equities has a buy stance on the stock and expects it to hit a target of Rs 222 in a year.

“We expect volume growth to continue given the: i) commissioning of a super-hub in Bengaluru, ii) improving service metrics, and iii) efforts around marketing and digitalisation to target MSME and KEA accounts. We remain optimistic on GTIC’s turnaround story and expect a gradual re-rating as the structural changes will start reflecting in financials. Its Balance Sheet remains healthy, with a nearly net debt free position, steady working capital, and healthy operating cash flows. We revise our target price to Rs 222 (Rs 234 earlier) to account for near-term margin pressures. Maintain ‘BUY’,” said the brokerage.

Gati is one of India’s premier express distribution and supply chain management companies, committed to delighting customers with seamless, end-to-end logistics solutions backed by future-ready digital tools and technology. Gati’s coverage spans the whole of India, bolstering businesses with access to more than 19,800 PIN Codes and 735 of India’s 739 districts.