See 25% upside in Gati over next 12 months, says Rajen Shah of Angel Broking.
Shah told CNBC-TV18, "If you are betting on the economy growing at 6.5-7% I think logistics certainly needs to be having a small part of our portfolio and Gati certainly stands out. It is available at market cap of just about Rs 530-540 crore. This stock has not moved up the way other midcap stocks have moved up. Most of them have moved up anywhere between 200-300%. I am talking about quality and maybe some of them 400% but Gati has just moved up 100% from the bottom."
He further added, "Performance has been improving and the other interesting thing is that recently on January 11, the company passed a resolution enabling the MD of the company to subscribe to about 1 crore warrants at a price of Rs 67 which will be converted into equity shares at Rs 67. So when the MD himself is pumping in Rs 67 crore in a company; whose market cap is Rs 530 crore, the stock is certainly bound to move up. So I would certainly get into the stock at the current levels for an upside of about a bear minimum 25% over the next 12 months."
