The Hindu Business Line : Gati rises on foray into international markets

In the past week, shares of the company moved up by 25 per cent. On Thursday, the stock rose 11.38 per cent at Rs 274.60 on the Bombay Stock Exchange with a volume of 1.78 lakh shares.

Brokers attribute the interest in the stock price to the company's plans to have an international presence. Recently, the company decided to set up subsidiaries in foreign countries to expand its international business.

Gati has already established its presence in Singapore, Hong Kong, Shanghai, Beijing, Sri Lanka, Nepal and Bhutan.

"By leveraging its countrywide network of branches, express distribution centres' and centralised distribution centres, Gati is at the right place to take advantage of a dynamic market that is actively outsourcing its express distribution and supply chain requirements," said Kotak Securities in a report released on Thursday.

It said logistics is expected to be one of the fastest growing businesses for the next two decades and Gati is well positioned to benefit from this. Another positive aspect about the company is that it owns properties across the country. "The company, being in the business of logistics and supply change management, has huge properties by way of land, warehouses, depots and offices across India. It is estimated that the company owns over 1.2 million sq ft of property," Kotak Securities said.

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