Shipping, where is it heading? - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Shipping, where is it heading?

May 11, 2000

The strength of the Indian fleet and the total cargo declined during FY99, reflecting a sharp deterioration in business prospects. However, with the trade scenario looking good, companies like Great Eastern Shipping (Gesco) and Shipping Corporation of India (SCI) should be able to shake off the slowdown that hurt their financial performance. Growth in exports during FY00 is expected to touch the double-digit mark, after hovering at 5% in FY97 and 4% in FY99. But, the only concern is that, our export basket is concentrated towards few items including gems, jewellery and cotton yarn. These items contributed to 68% of the increase in total exports during April-January FY00.

Imports also increased in US$ terms by 7.9% to $41.9 bn. This was more on account of an increase in petroleum, oil and lubricant imports. The latest figures indicate that the petroleum, oil and lubricant imports increased by 66.4% during April–February FY00.

The Baltic index, which indicates the dry bulk freight market, recovered in late July 1999. An improvement in freight rates would enable shipping companies to post better margins. Furthermore, depreciation in the value of the Indian Rupee will boost Dollar earnings of these companies.

Against this backdrop the major apprehension is that this sector lacks proper infrastructure and port handling facilities. This could affect efficiency of operations leading to a sub optimal use of capacity.

Gesco is currently trading at Rs 14.2 at a P/E of 3.3 on FY2000 earnings. SCI is currently trading at Rs 13.7 at a P/E 1.9 on FY1999 earnings.


Equitymaster requests your view! Post a comment on "Shipping, where is it heading?". Click here!

  

More Views on News

G.E.SHIPPING Announces Quarterly Results (1QFY21); Net Profit Up 966.8% (Quarterly Result Update)

Aug 24, 2020 | Updated on Aug 24, 2020

For the quarter ended June 2020, G.E.SHIPPING has posted a net profit of Rs 5 bn (up 966.8% YoY). Sales on the other hand came in at Rs 11 bn (up 36.5% YoY). Read on for a complete analysis of G.E.SHIPPING's quarterly results.

G.E.SHIPPING Announces Quarterly Results (3QFY20); Net Profit Up 10.7% (Quarterly Result Update)

Feb 14, 2020 | Updated on Feb 14, 2020

For the quarter ended December 2019, G.E.SHIPPING has posted a net profit of Rs 3 bn (up 10.7% YoY). Sales on the other hand came in at Rs 11 bn (up 10.9% YoY). Read on for a complete analysis of G.E.SHIPPING's quarterly results.

ABAN OFFSHORE 2017-18 Annual Report Analysis (Annual Result Update)

Mar 20, 2019 | Updated on Mar 20, 2019

Here's an analysis of the annual report of ABAN OFFSHORE for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of ABAN OFFSHORE. Also includes updates on the valuation of ABAN OFFSHORE.

DREDGING CORP 2017-18 Annual Report Analysis (Annual Result Update)

Mar 20, 2019 | Updated on Mar 20, 2019

Here's an analysis of the annual report of DREDGING CORP for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of DREDGING CORP. Also includes updates on the valuation of DREDGING CORP.

More Views on News

Most Popular

My Top Stock to Buy in this Market Selloff (Profit Hunter)

Sep 22, 2020

The recent correction offers a great opportunity to buy this high conviction smallcap stock.

Can the Nifty Fall to 10,200? (Fast Profits Daily)

Sep 24, 2020

The Nifty has reached an important support level today. If it breaks then we could see further downside.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...

I Believe These Stocks Will Deliver the Most Outsized Returns in 2021 and Beyond (Profit Hunter)

Sep 23, 2020

Rules of the racetrack can help you bag the biggest gainers of the coming decade.

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

COMPARE COMPANY

MARKET STATS