Tater told CNBC-TV18, "Couple of week's back we recommended Gati where there was a risk of promoter almost 90% pledged and while going through the numbers of Patel Integrated Logistics, which is into almost a similar space we got a comforting sector. Gati does a revenue of around Rs 1000 crore and is available at a market cap of Rs 480 crore. On the other hand Patel Integrated Logistics with its reviewed audited financial result did revenue of close to Rs 420 odd crore and is available at a marketcap of just Rs 47 odd crore. So we feel there is an arbitress market cap to sales into the stock."
He further added, "If I look into the learning of experience the first quarter result has been very well done for Patel Integrated Logistics where they have improved their EPS by almost 60% year on year and going by the similar projections for the full year we expect the company would stabilize it's net profit margin of close to 1.3% on a sales of Rs 540-560 crore. That would translate roughly into a net profit of Rs 7.5 crore versus which will give me a PE of less than 6 times for next year."
"I think this is one stock which can be looked on every dip from a longer term perspective. We have a first target of close to Rs 47 which is the 52-week high for the stock and Rs 59 because of the book value of the stock. We think this stock can be traded for these two targets keeping a strict stoploss of Rs 27 odd marks."
