Top buzzing stock of the day: Gati Limited

The stock has surged nearly 8% on Wednesday and has hit a fresh 52-week high of Rs 211.80.

Gati Limited is engaged in express distribution and supply chain solutions. It is also engaged in the business of e-commerce and cold chain logistics. With a market capitalization of Rs 2581 crore, it is one of the promising smallcap companies in the logistics sector. The company was majorly hit with the shutdown last financial year due to the pandemic. However, the company management assures the investor’s trust, which is evident from the stock price movement.

Last year, the stock delivered about 90% returns to its shareholders and has outperformed most of its peers during the process. In a short period of one month too, the stock delivered about 30% returns. Such performance indicates the potential of the stock in times to come.

The majority stake (about 52%) of the company is held by the promoters while the institutions hold about 5% stake in the company. The rest is held by the HNIs and retail portion.

The stock has surged nearly 8% on Wednesday and has hit a fresh 52-week high of Rs 211.80. The stock scaled higher with rising volume in the last four months and has increased its share value by over 50%. On the weekly timeframe, the trend indicator ADX is rising above 33, which shows a strong trend of the stock in the medium term. The daily RSI has entered the super bullish zone while the MACD has given a fresh buy signal. The Elder Impulse System, too, has indicated a bullish view of the stock. The Mansfield Relative Strength indicator indicates that the stock has outperformed the broader market in recent times.

The price action is accompanied by rising volume which suggests active market participation. The volume recorded today is greater than the 10-day and 30-day average volume which validates the bullish view of the technical indicators.

Cutting the story short, the stock is showing great strength and looks set to scale newer highs in times to come.