stock updates- Results of Gateway

GDL declared its 3rd Quarter results and also declared an Interim dividend of Rs. 1.50 per share

The summary is as follows:

As compared to the Dec 2004 quarter Net Profits have jumped by 38% whereas income has increased by 22%. Compared to the September 2005 qtr NP is down marginally by 1.93 crores. The company has given the reason that there was an exceptional income of 3.07 cr. during the Sep quarter. Nothing to complain about

Since results for 3 quarters are out let us see whether we can project the results for the full year 2005-2006

Upto December it has done a sales of around 105 cr with the bottom line at 54 cr. So on conservative estimates it should acheive a topline of 130 cr and a bottom line of 70cr giving an EPS of about 8. If it acheives this it would have doubled its Net Profit on an yearly basis and it should be able to maintain its growth due to its expansion plans; the equity has risen from 64 cr to 92.20 cr in the same period due to the IPO and the GDR offer.

At a forward P/E of around 30 the stock definitely looks expensive but it can be seen as a good bet in the long term:
a) In the Logistics business

b) In December 2005 the Co. issued GDRs at a price of about 230/- and this can be seen as an ultimate bottom if at all the stock falls

c) Citibank N.A holds a stake of about 18% and my guess is that it ws throgh the GDR.

Looking forward to see the magic figure of 10000 on the SENSEX

A word of Caution: Take your profits home and invest your profits somewhere else; dont chase stocks which are running away ; look for value and calculate the risk reward ratio before u commit your money to an overvalued stock. Nobody can predict the top and when it starts falling it will be at a much greater speed since the fall will be aided by the Earths Gravity.