Gati has gotten even more interesting after the recent correction IMO. The old promotors are exiting – TCI Finance share is down to below 0.4% Jubilee Commercial and Bunny investments are almost sold out, and in the stock is now trading at close to one time sales with rapidly improving fundamentals.
The Indian express logistics space is among the more insulated sectors from a global recession, and falling crude prices should help reduce working capital (even though it is largely passed through to customers). I see a large secular growth runway for efficient national players with expanding margins. It is now my third largest holding and I am considering making it the largest holding if the share price falls to below trailing 12 month sales at any point in time.
This is not advice. This is what I am doing base don my interpretation of the industry and I may be wrong by a long shot. In fact I would request members to present counter views so I can strengthen my understanding of the business.
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