I just had a look on SCI last 3 Qtr numbers. Its seems company has turned around & its Achhe Din has arrived .Company has started making good profits now Debt has also reduced with bumper increase in PAT since last 2-3 Qtrs. This company has a record of very good Dividend payout in the year FY2006 to FY 2011, when it was making profits. So dividend of 3-4 Rs cannot be ruled out in FY16, which will make it a 5-6% Div yeild stock at CMP. Considering the low Oil Prices & possibility of Dividend this year,I think this company can give very good returns in next 2-3 Qtrs. PFA the Qtry Data for everybody’s refrence. Technicals also looking very strong. Other’s valuable views are welcome.Thanks.
Why is Shreyas Shipping sinking while Shipping Corporation is recovering.
Surprisingly they have exactly moved in opposite direction for last one year, this is a very rare site, whenever a sector moves they generally move synchronously.
With Baltic Dry Index hitting record lows, freight prices have collapsed. I do not know how the shipping companies are making money or will make more money in the near future. We are in turbulent times Guys !
One of my friends is in exim business of Aggro-commodities and has revealed that over last 6-8 months, the freight rates are decreasing. It used to take a few weeks to load the shipments because of congested ports and availability of ships/containers. Now, the situation is different. He said he has never seen so low freight rates in last 10 years. Well, this may not be generalized, but thought to share it with our group.
Bunker(Fuel) is the main operating cost in shipping …Second thing is what type of ships company is operating.Baltic index is only for dry bulk cargo.
World scale is used for tanker markets and liquid cargo is definitely doing better
South Korea’s largest and world’s 7th largest shipping container Line Hanjin Co. filed for bankruptcy. This article calls it the “Lehman moment” for the shipping industry:
It’s true that overcapacity and increasing competition have led to extremely low cargo rates and have squeezed operating margins of companies worldwide. The world’s largest shipping companies are in dire financial conditions. This article gives details:
As per the FYe22 balance sheet/annual report of SCI, the value of non-core assets held for demerger stood at Rs 2,392 crore (about 27% of net worth as of March22 net worth). The main asset is the maritime training institute in Powai, Mumbai with land area of ~179K sqm which is currently valued at ~2376 Cr and this seems about right. However Shipping House building at Nariman point is valued at only ~9 lakhs which is ridiculous. Moreover, there is surplus cash of ~450 Cr. S P Tulsian has given an estimate 11000 crores for the current market value of the noncore assets of SCI which works out to about Rs. 230/- per share. To my mind, the main risk/concern is that the path to the monetisation of the core assets such as the land of Maritime Training Institute is unclear.
“Undervaluation” has always been the key here, prime assets are sold at dirt cheap prices so that govt does not look greedy on face. As a result, there is huge value loss of the common public and a few private people and some “babus” literally “laugh their way to the banks”.