Firstcall are 'overweight' in this shipping and offshore business company

Firstcall India Equity | March 23, 2016, midnight

SYNOPSIS


- The Great Eastern Shipping Company Ltd, through its subsidiaries, is engaged in shipping and offshore businesses in India and internationally.


- During Q3 FY16, consolidated net profit jumps to Rs. 2748.60 mn against Rs. 1817.00 mn in Q3 FY15, an increase of 51.27%.


- Consolidated revenue for the quarter rose by 7.97% to Rs. 9477.40 mn from Rs. 8778.10 mn, when compared with the prior year period.


- During the quarter, consolidated EBITDA is Rs. 5402.40 mn as against Rs. 4068.40 mn in the corresponding period of the previous year, grew by 32.79%.


- In Q3 FY16, consolidated PBT rises by 70.13% of Rs. 3019.30 mn against Rs. 1774.70 mn in Q3 FY15.


- EPS of the company stood at Rs. 18.23 a share during the quarter, registering 51.27% increased over previous year period.


- The company has declared an interim dividend of Rs. 7.5/- per share on face value of Rs. 10.00/- each for the financial year 2015-16.


- Net sales registered a growth of 14.64% of Rs. 29277.40 mn for nine months end of FY16 as compared to Rs. 25537.90 mn for nine months end of FY15.


- For the end of 9M FY16, Net Profit grew by 60.52% at Rs. 9812.00 mn compared to Rs. 6112.70 mn for the end of9M FY15.


- Net Sales and PAT of the company are expected to grow at a CAGR of 9% and 28% over 2014 to 2017E respectively.


OUTLOOK AND CONCLUSION


- At the current market price of Rs.328.40, the stock P/E ratio is at 4.04 x F Y16E and 3.40 X FY17E respectively.


- Earning per share (EPS) of the company for the earnings for F Y16E and FY17E is seen at Rs. 81.28 and Rs. 96.51 respectively.


- Net Sales and PAT of the company are expected to grow at a CAGR of 9% and 28% over 2014 to 2017E respectively.


- On the basis of EV/EBITDA, the stock trades at 2.98 x for F Y16E and 2.63 X for F Y17E.


- Price to Book Value of the stock is expected to be at 0.58 x and 0.52 x for F Y16E and F Y17E respectively.


- Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.


blog comments powered by Disqus