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Narasimhan's review
Investment Sector: IPO / Secondary Offering Submitted by Narasimhan 
, Owner
at Krish Systems
6 months ago Tags: Shipping Bonus issue Good performance Add Tag |
Shipping corporation of India (SCI), a state run shipping company was incorporated in the year 1961 by the amalgamation of Eastern Shipping corporation and Western Shipping Corporation. Two more shipping corporations Jayanthi Shipping Company and Mogul lines limited merged with the company in the year 1973 and 1986 respectively. It operates and manages a fleet of line vessels, tankers, bulk carriers, passenger vessels, and offshore vessels. It offers a wide range of services including liner and passenger services, Bulk carrier and tanker services, and offshore services.
The company announced its last quarter results recently. The company has posted a net profit of Rs.2486.9 million for the quarter ended march 31, 2008 as compared to Rs.2486.5 million for the quarter ended March 31,2007. Total Income has increased from Rs.10805.6 million for the quarter ended March 31, 2007 to Rs.11774.4 million for the quarter ended March 31, 2008.
The Major Financial indictors are given below.
| Rs Millions | Mar ' 08 | Dec ' 07 | Sep ' 07 | Jun ' 07 | Mar ' 07 |
| Sales | 10568.3 | 9152.7 | 8688.8 | 8858.6 | 8681.9 |
| Operating profit | 2323.8 | 2281 | 2271.4 | 2455.3 | 2053.7 |
| Interest | 130.6 | 154.6 | 161.8 | 169.3 | 191.5 |
| Gross profit | 3399.3 | 2784.9 | 2878.8 | 3008.3 | 3985.9 |
| Depreciation | 656.9 | 938.4 | 750.8 | 685.8 | 842.3 |
| Net profit / loss | 2486.9 | 1767.8 | 1823.1 | 2061.2 | 2846.5 |
| Equity capital | 2823 | 2823 | 2823 | 2823 | 2823 |
| EPS (Rs) | 8.81 | 6.26 | 6.46 | 7.3 | 10.08 |
| OPM (%) | 21.99% | 24.92% | 26.14% | 27.72% | 23.65% |
| GPM (%) | 32.17% | 30.43% | 33.13% | 33.96% | 45.91% |
| NPM (%) | 23.53% | 19.31% | 20.98% | 23.27% | 32.79% |
The comparative performance with major peers is tabulated below.
| Rs Millions | Shipping Corp | GE Shipping | Essar Shipping | Mercator Lines | Great Offshore |
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| Sales Turnover | 10568.3 | 7379.8 | 2272.2 | 2656.7 | 2029.7 |
| Other Income | 1206.1 | 454 | 3.8 | 321.3 | 20.2 |
| Total Income | 11774.4 | 7833.8 | 2276 | 2978 | 2049.9 |
| Total Expenses | 8244.5 | 3484.4 | 1236.9 | 1837.1 | 1119.9 |
| Operating Profit | 2323.8 | 3895.4 | 1035.3 | 819.6 | 909.8 |
| Gross Profit | 3529.9 | 4349.4 | 1039.1 | 1140.9 | 930 |
| Interest | 130.6 | 452 | 198.2 | 0 | 163.2 |
| PBDT | 3399.3 | 3898.1 | 840.9 | 1042 | 766.8 |
| Depreciation | 656.9 | 830 | 290.6 | 273.8 | 254.8 |
| PBT | 2742.4 | 3068.1 | 550.3 | 768.2 | 512 |
| Tax | 255.5 | 74 | 114.2 | 0 | 88.1 |
| Net Profit | 2486.9 | 2994.1 | 436.1 | 740.4 | 423.9 |
| Earnings Per Share | 8.81 | 19.66 | 1.02 | 3.15 | 11.12 |
| Equity | 2823 | 1522.7 | 4260.8 | 234.9 | 381.2 |
| OPM | 21.99% | 52.78% | 45.56% | 30.85% | 44.82% |
| NPM | 21.12% | 38.22% | 19.16% | 24.86% | 20.68% |
With an overall good performance in all fields the Company stands at second behind its major rival GE Shipping. The Company is going for new liner services. Steps have been initiated to a feeder service between kolkata and Singapore and two mainline services one from Vishakapattinam/Chennai with South China and another one from Chennai/Tutocorin with Mediterranean/European Ports.
The stock is now trading at the level of 250. The Company had got a year high of 332 and low at 154. This is a better buy for the for the long term investors at this level. As the company is opting for 2:1 bonus issue, the investors may hold this share.
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