Patel Integrated Logistics

Hello All,
Can anyone throw some light on PIL, I have bough 650 shares @ 115, the stock is going down, do you think I can add some more here, or what should be the strategy ahead, my investment time is around 5 years, will the GST bill do some good for this stock.
Thanks

 

What is the company about? Can you give us some more information regarding the company. If it is a pure logistic player how will the GST bill affect them ?

 

Last time heard from the management on ETNow they were saying expanding business into e-commerce. but this is like a old company and in screener.in, it is placed second in its sector, I didn't do much investigation jumped to invest into it based on its one quarterly results and management commentary on ETnow.

 

Well I am not an economics major but the sense of GST that I have got is that it would just put one tax to almost all the goods and services instead of each separate taxes that are put on any particular good or services in each state. If it is purely logistical player then I am not sure how will GST help them as they pass on all the taxes that they pay while shipping goods from one place to another to their customer. It is obvious that logistical companies wont be paying them from their own pockets. So even if all the taxes are clubbed into single GST they would still pass on to their customer. Although some say that time which the trucks now spend at the borders of particular state might be reduced and this would be a positive factor for logistic company as it would involve a faster turnaround time for them but that is yet to be seen. I don't know much about the particular company that you asked but I would suggest that you read its annual report for at least last couple of years. It might give you a better idea of the nature of its business and its business model. Once you know what it does and how it does it you may yourself have a better idea about the stock.

 

GST will help logistic companies as they will not have to pay state taxes and octroi when they cross cities / states etc.

 

@ssharma
But they don't pay it. They never pay from their own pockets. They charge the sender or the receiver of all the taxes and octroi. Lets say if you want to ship something from Delhi to Chennai via road, whatever taxes and octroi that would apply you would have to pay them yourself. The transportation company would never pay from its own pocket.

 

Hmm ... you are right.
This is a good article on GST and its impact on Logistic companies
https://www.thehindubusinessline.co...enefits-to-logistics-firms/article7057164.ece

 

Yes GST would be beneficial in the form of increased efficiency. Also I guess as pointed out in the article, the organised space in logistic sector is just 10-20% and once GST is implemented and efficiency is increased, I think the share of organised space would be bound to increase. Although I am still not sure about Patel Integrated as a company.