Fairval

Notes on Indian equities, sectors and economy

Archive for the ‘Logistics’ Category

Gateway in play?

Posted by fairval on December 29, 2007

About 2-3 weeks ago, we wrote that Gateway is a buyout candidate. On 28 Dec, there was this story in ET —

Shares of Gateway Distriparks rose on reports that the firm’s Indian promoter is hiking his stake and taking management control of the company.

Reports suggest this may be a prelude to a stake sale later to a strategic player. Mukesh Ambani-owned Reliance Logistics and the Tata group are believed to have expressed interest for a possible buyout.

Seems there is something to the buyout rumours. Gateway is struggling to perform, its new initiatives arent going anywhere

Posted in Logistics, PE/VC | Leave a Comment »

Foursoft shows some life

Posted by fairval on December 8, 2007

Foursoft, a Hyderabad based IT company focussing on the supply chain space, finally showed some life last week after months of underperformance. The scrip moved from Rs 40 to Rs 58 in about 3 days. On Friday, it was up 20%.

Not sure what is the driver, the one news item was this —

Four Soft (4S) (NSE: “FOURSOFT”, BSE: 532521) has signed the contract with Midl Integrated Logistics B.V. Nijmegen (The Netherlands) to implement its web centric warehouse solution 4S eLog. 4S eLog is a web-centric Warehouse Management System aimed at Logistics Service Providers.

Foursoft had seen investment of Rs 25 crore by Kotak’s PE fund in Sep’05 at a price of Rs 63 or so. Check the magnitude of underperformance. The stock market has doubled since then, while Foursoft had fallen around 30%. Now, atleast it is somewhat closer to Kotak’s investment price.

Not sure if Kotak is still invested. No one from Kotak is on board. Sarath Naru of Ventureeast is on the board. Dont think Ventureast is invested in Foursoft.

The scrip needs to double atleast to justify Kotak’s original investment decision. Results this year arent good. Net profit is down 60% or so for 1H08, topline is flattish. The M Cap is only around Rs 110 crore tho, and the company quotes at maybe 12-13x FY08. So it isnt expensive. If there is some business pick up, then the scrip could move further.

Posted in Logistics, PE/VC, Stock Ideas | 2 Comments »

Sell Gateway?

Posted by fairval on January 13, 2007

Valuations of Gateway Distriparks, and increasing Allcargo, are beyond comprehension.

A director of Gateway apparently thinks the same way. Today, Kirpa Ram Vij, an indepedent director of Gateway, sold 31,350 shares. He still has 708,651 shares, which is quite substantial. Mr Vij realised Rs 60 lakh from this sale. His residual holding is Rs 13 crore plus. So there is a lot to go, and this sale may not mean much. But this share doesnt look a buy at these levels anyways

Posted in Logistics, Stock Ideas | Leave a Comment »