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GATI Ltd Stock Analysis

Small Cap
Evaluated by 1974 users | BSE: 532345 | NSE: GATI |
Logistics
Gati a pioneer in express distribution and supply chain solutions in India, was incorporated in the year 1995. The company has revolutionised the Indian logistics segment.In just 19 years the company has consistently discovered ways to provide a quality service to end customers.In 1996 the...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
GATI Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Jun'11Jun'12Jun'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20TTM
Return on Capital Employed 6.58%6.28%3.84%2.42%4.08%3.47%3.63%4.9%4.01%-4.9%-
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 905705161336443485498446516425274
Y-o-Y Gr. Rt.--22.1%-77.1%108.4%31.9%9.5%2.7%-10.4%15.7%-17.6%-
Adjusted EPS (Rs.) 1.60.842.942.982.972.182.022.872.21-4.37-14.34
Y-o-Y Gr. Rt.--47.5%250%1.4%-0.3%-26.6%-7.3%42.1%-23%-297.7%-
Book Value per Share (Rs.) 32.8938.8596.2496.369.6969.9673.3569.3370.5365.5751.60
Adjusted Net Profit 13.77.325.4262619.117.831.224-53.3-176
Net Op. Cash Flow (Rs. Cr.) 66.1-61.11.5-18.9-20.42840.162.350.7-19.2-
Debt to Cash Flow from Ops 6.92-2.74130.55-15.15-13.5910.378.212.32.3-5.39-
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
GATI Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -8.1%-0.8%-5.1%-17.6%
Adjusted EPS -211.8%-208%-229.3%-297.7%
Book Value per Share 8-1.2-3.7-7
Share Price 18.4% -2.3% 18.3% 260.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Jun'11Jun'12Jun'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20TTM
Return on Equity (%) 4.482.224.292.634.133.082.84.433.16-6.81-24.48
Operating Profit Margin (%) 10.3110.3810.14.499.348.94.65-0.333.11-8.43-3.37
Net Profit Margin (%) 1.521.0415.777.735.863.943.586.984.65-12.55-64.24
Debt to Equity 1.620.50.230.340.460.470.510.190.150.130.02
Working Capital Days 15316451532215816514210984103129
Cash Conversion Cycle 514257453645317-11-1940
Entity Percentage Holding
Promoters 52.22%
Institutions 2.66%
Non-Institutions 45.12%
Pledged *74.1962.9970.1664.0334.125.015.015.014.844.73
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of GATI Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that GATI Ltd is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of GATI Ltd's performance infers:

GATI Ltd earnings have declined by -208%, whereas share price has depreciated -2.3% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of GATI Ltd share prices over the last 10 years. Here is what we found out:

GATI Ltd share price has depreciated 8.6% annually over the past ten years.

Gati a pioneer in express distribution and supply chain solutions in India, was incorporated in the year 1995. The company has revolutionised the Indian logistics segment.

In just 19 years the company has consistently discovered ways to provide a quality service to end customers.

In 1996 the company tied up with Indian Airlines to create facilities for speedier delivery of shipment. This 12 year relation

Gati a pioneer in express distribution and supply chain solutions in India, was incorporated in the year 1995. The company has revolutionised the Indian logistics segment.

In just 19 years the company has consistently discovered ways to provide a quality service to end customers.

In 1996 the company tied up with Indian Airlines to create facilities for speedier delivery of shipment. This 12 year relation has led to launch Air India Gati a co-owned brand.

The company was the first to run the cargo express train in October 2001 between Mumbai and Kolkata in association with Indian railway creating a classic example of Public Private Partnership. After Gujarat earthquake, the company took an initiative to adopt Maye, a village in Bhuj for rehabilitation. Recognising the contribution, the villagers renamed the village as Gati Nagar

In the year 2003 it launched Gati@web to for faster and better communication.

Today it has employee strength of 3500 people with a turnover of Rs.5755 million.It has over 4000 vehicles on road covering 603 districts and warehousing facilities of 1.5 million sq. ft. across all major cities. The company has edge over others as it has connectivity across air, road, ocean and rail providing a quality services to customers. Gati has offices in China, Singapore, Japan, Dubai, Hong Kong, Thailand, Nepal and Sri Lanka and have plans to foray into other markets.

Gati has clientele including Sony, Nokia, LG, Titan, NCR, 3M, Siemens, Dabur, Asian Paints, Tata, Wipro, Globus, Reebok, UTI Bank, Mahindra and many more.

Milestones/Awards

Gati was the first logistics company in India to be awarded ISO 9001 certification.

In the year 2003, Gati bagged the voice of customer award for 'The Best Logistics Company 2003' in a survey conducted by Frost & Sullivan.

The company was awarded the 'Best Logistics Partner' by HCL Infosystems for 2005 -2006.

2009
Launched the Mechantronic Warehouse in Hyderabad
Launched 10C, a solution for information on real time shipment delivery notification.
Launched Gati Academy
Launched Gati Art Express
Introduced SQS (Service Quality Standardization).
Enterprise Connect Award 
Amity HR Excellence Award

2010
Launched Gati Redsun, Supply Chain Division – Gati's first step forward towards becoming a knowledge company and an integrated Supply Chain Solutions provider.
Launched Gati E-Commerce – 'makemygiftz.com', Gati's new web service to offer its customer an intefrated e-commerce platform linked to a physical distribution network.

2011-12
Gati signed a Joint Venture agreement with Kintetsu World Express for its Express Distribution and Supply Chain business on February 13, 2012
Launched Gati "Connect" -an on-line web store to cater to the growing e-Commerce market

2010 - Launched Gati Redsun, Supply Chain Division – Gati's first step forward towards becoming a knowledge company and an integrated Supply Chain Solutions provider.Launched Gati E-Commerce – 'makemygiftz.com', Gati's new web service to offer its customer an intefrated e-commerce platform linked to a physical distribution network.

2011-12 - Gati signed a Joint Venture agreement with Kintetsu World Express for its Express Distribution and Supply Chain business on February 13, 2012GATI-KWE won Express Logistics Supply Chain Award for Best Logistics Provider of the Year-Road 2012.

2013
Mahindra Transport Excellence Awards
Star Group & National Quality Excellence Awards
Rasbic Awards 2012-13 Recruiting & Staffing Best in Class Awards
Mahindra Logistics Business Partners Awards 2013
Logistics & Supply Chain Leadership Awards

2014
ICC Supply Chain & Logistics Excellence Awards

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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