Buy Small Cap Stock Under Rs 100, Likely To Give High Return, Rallies 5.08%, Says Sharekhan

Sharekhan initiates Buy call on Gateway Distriparks Ltd. (GDL) with a target price of Rs, 80/share. The brokerage sees a decent upside of up to 16% from its current level if purchased at the current market price. This a Logistics sector small-cap stock listed in March 2022. It has a market price of Rs. 3,465.03 crore.

Valuation - Upgrade to Buy with a revised PT of Rs. 80/share

According to Sharekhan, GDL has shown resilient performance in the wake of EXIM imbalance and sustained pressure in CFS business led by increased fixed costs. However, the company is witnessing an improvement in exports especially in its core NCR region which is expected to aid in improving operational profitability going ahead. The company continues to evaluate newer locations for terminals, upgrade existing terminals and hire new rakes for which it has earmarked Rs. 300 capex over the next two years. "We believe the company remains on track to benefit from an expected improvement in exports going ahead. We upgrade the stock to Buy with revised price target of Rs. 80, rolling forward our valuation multiple to FY2025 earnings and considering improving EXIM growth outlook," Sharekhan said.

Stock Outlook

The stock's current market is Rs. 69.35 apiece. It jumped 5.08% from its previous close of Rs. 66 apiece. Its 52 week low is Rs. 58.55 apiece and 52-week high is Rs. 76.75 apiece, respectively.

It has given 8.61% positive return in the past 1 week. In the past 1 month, it gave 9.64% positive return and in the past 3 months, it gave 13.5% positive return. In the past 1 year, it has given 6.79% negative return. Since its listing, its share value has fallen 4.15%.

Disclaimer - The stock has been picked from the brokerage report of Sharekhan. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.