BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
GATI Ltd.'s Q1 FY23 revenues and margins reflect improvement in the business with consolidated Ebitda margin at 4.4% (up from 0.9% QoQ), nevertheless short of our expectations.
Also, interest and depreciation have charted a higher than expected path, presumably as the Ind-Accounting Standard driven lease cost expenses flow through – leading to earnings downgrade.
More such positive margin shifts (along with expanding profit after tax margin) will enforce faith in success of the ongoing business transformation.
GATI has lined out the key pillars for sustainable/profitable growth, of which ‘sales acceleration' and ‘infrastructure' are key, in our view.
We concur with the management vision of three revenue growth and improved margin profile over next three years. This will potentially allow expansion of profitability, earnings as well as valuation multiples over FY23E-FY24E.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
