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Midcap Microscope: Spotlight on Gati

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Midcap Microscope focuses on logistics company, Gati, which has been showing gradual improvement in business prospects post getting a new promoter.

Midcap Microscope focuses on logistics company, Gati, which has been showing gradual improvement in business prospects post getting a new promoter.
Gati is part of the B2B segment of the express industry, which has an approximate market size of around Rs 13,500 crore. It is the second largest player after Safexpress.
Majority of the company’s revenues come in from surface express, while the remainder comes in from supply chain management solutions, air express, as well as the e-commerce verticals.
The stock has nearly tripled from the lows of 2020. However, it is still close to around half of what it was at its peak, a few years ago.
Financials have also improved – the revenues have been gradually improving, the margins are scaling towards that high single-digit mark, the debt is reduced by close to around Rs 100 crore.
Going by the company’s plans, it can be virtually debt-free as it plans to exit its cold-chain business as well as sell some of its other non-core assets.
Watch accompanying video of CNBC-TV18’s Nigel D’Souza for more details.
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