In my first article on potential mid-cap multibagger stock picks I had discussed the fundamentals and long term outlook for Subhash Projects and Marketing Ltd. I will be talking about my second mid-cap stock pick, Gateway Distriparks Limited in this article.

Before I discuss the fundamentals and future outlook for the stock, i would wish to emphasize on the fact that I am not sure where these stocks will be headed in the next 3-6 months. What I am sure about is their fundamentals, good business model, good management and their potential to create long term value for investors. Thus, these stock talks should not be taken as short-term advice. It is just a discussion on the factors which will propel revenue growth and hance stock price appreciation for the Company.

I would also wish to emphasize on the fact that the markets currently look overbought. While markets are again impossible to predict, I can say that the probability of the markets going lower (in the next few months) is higher then the probability of the markets going even higher. For my rationale, read my article on Nifty Valuation. So, in my opinion, buying equities at current levels should be avoided. A correction might make valuations and individual counters look more attractive.

Company: Gateway Distriparks Ltd.

Industry: Logistics and Cold Chain Storage