Gati

Message

   Gati Ltd, a Rs 570 crore company by sales, provides multi-mode (road, rail, sea and air) logistics services announced plans to acquire 52.96% stake in Kausar India Ltd  ........ makes good sense and is complementary to Gati's business.

Kausar, listed on Delhi and Ludhiana stock exchanges, has been in the transportation business for 20 years, of which the last 10 years have seen it specialise in refrigerated transportation.  

Kausar is still small in size, but growing fast; revenues grew by almost 40% in the last two years to Rs 18.70 crore in 2006-07. Along with the boom in retailing and thrust on agriculture and food processing, it suggests that there is immense potential to scale up Kausar's business.
Meanwhile, Gati has also drawn up plans to further strengthen its network, supply chain and warehouse space, increase capacity in shipping business and establish a stronger presence in select foreign markets to provide India-centric logistics services, over the next two years. 
In May 2007, Gati in partnership with Indian launched an air-cargo company. IC-Zipp, its product, will be launched in over 100 cities initially, priced between Rs 50 and Rs 150 for 500 gm and will provide customers door pick-up and real-time tracking of consignment. That follows Gati's tie-up with China Railway Express International Logistics (has presence across all 31 provinces in China) in January 2007, to provide end-to-end logistics solutions to customers in India and China. 
Funding these plans shouldn't be a concern as most of the resources have been tied up in the last 12 months.

At Rs 106.05, the stock trades at a PE of 24.6 times its estimated fully-diluted EPS for 2007-08 and deserves attention on declines.

Source: Dna money

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I guess some TEDdies do own Gati. Looks interesting.