SCI BUY
4th Mar'21 CA @ Anil Sanghvi Zee business Long term pick Show: Rakesh Bansal & Kunal Saroghi .BUY SCI for 170 & 220. Qrtrly LONG TERM CHART DOUBLE BOTTOM BREAK-OUT
Dwarka S B P Ltd makes a detailed BUY report so that you readers appreciate the complete research on valuation as our research gives a minimum VALUATION of 249.06₹, (net of BWTS & 4 LNG assocs with Mitsui OSK, NYK , K- lines which us additional 15₹ as thus comes under (consol) NAV. If the bid as we expect HITS 165₹, then VALUATION OF SCI SHOOTS TO 308₹) specially considering India has no shipping analyst & this type of exhaustive research on Shipping Corp has not been attempted earlier. We say this as the last report on shipping was by Kotak Secs. in Nov 2017 where in they valued SCI at 0.67 BV! It's always NAV which is the Gospel for shipping investment bankers' financial metric.
Dwarka S B syndicated article for MoneyTimes readers.
Moneytimes has recommended SCI as an investment in the past issues. However, Moneytime readers will appreciate SCI as a 1st derivative play on Shipping & 2nd derivative on (owned Real Estt) play in Shipping Sector. Investors can make a calculated decision based on the exhaustive research on SCI for a minimum VALUATION of 253.62 ₹ net of BWTS Capex & 4 LNG tanker assocs with Mitsui OSL, K- Lines Jpn etc. ~ 15₹ per share in (consol) sttmnt.
This VALUATION has been done with the help of Norway's Joakim Hannisdahl MD, Cleaves Securities #1 Intnl. Shipping Analysts by Bloomberg & extensive research on value of FLEET & PROPERTY ( Demerged by board on Nov 6, 2020) is given below
Valuation table
Valuation ( Dec FY '21 )
Shipping Corporation of India
Particulars
Value (in crs)
*Fleet 7306 @$ = 72.62 ₹
Property(AR, FY'20)
Shipping House . . .1000
Haldia & Kolkata,Mumbai 2376
(As per AR '20 page 140)
MTI Powai, 45 acres 2554
Property Total 5930
(-) Net Debt 1857
Equity Value 11379
Net Tax arrears 213
Loans 227
Total Value 11819
Equity Shares No. Cr 46.6
Value per share (₹)253.62
Source: Dwarka Share Brokers P Ltd ( internal research)
* Fleet :since 27 Feb Cleaves Secs reports 1st time since 2017 share prices of bulkers 1.29×NAV. Similary " SS steel" has shown upward pressure & NAVs for products & crude tankers are up 6%.
▪︎ This value 249.06₹ unlocks by 1) 10 international shipping Cos & ports bidding for SCI Based on its NAV ₹ + as it is the international shipping banking metric to aquire SCI which has the following :
4th Mar'21 CA @ Anil Sanghvi Zee business Long term pick Show: Rakesh Bansal & Kunal Saroghi .BUY SCI for 170 & 220. Qrtrly LONG TERM CHART DOUBLE BOTTOM BREAK-OUT
Dwarka S B P Ltd makes a detailed BUY report so that you readers appreciate the complete research on valuation as our research gives a minimum VALUATION of 249.06₹, (net of BWTS & 4 LNG assocs with Mitsui OSK, NYK , K- lines which us additional 15₹ as thus comes under (consol) NAV. If the bid as we expect HITS 165₹, then VALUATION OF SCI SHOOTS TO 308₹) specially considering India has no shipping analyst & this type of exhaustive research on Shipping Corp has not been attempted earlier. We say this as the last report on shipping was by Kotak Secs. in Nov 2017 where in they valued SCI at 0.67 BV! It's always NAV which is the Gospel for shipping investment bankers' financial metric.
Dwarka S B syndicated article for MoneyTimes readers.
Moneytimes has recommended SCI as an investment in the past issues. However, Moneytime readers will appreciate SCI as a 1st derivative play on Shipping & 2nd derivative on (owned Real Estt) play in Shipping Sector. Investors can make a calculated decision based on the exhaustive research on SCI for a minimum VALUATION of 253.62 ₹ net of BWTS Capex & 4 LNG tanker assocs with Mitsui OSL, K- Lines Jpn etc. ~ 15₹ per share in (consol) sttmnt.
This VALUATION has been done with the help of Norway's Joakim Hannisdahl MD, Cleaves Securities #1 Intnl. Shipping Analysts by Bloomberg & extensive research on value of FLEET & PROPERTY ( Demerged by board on Nov 6, 2020) is given below
Valuation table
Valuation ( Dec FY '21 )
Shipping Corporation of India
Particulars
Value (in crs)
*Fleet 7306 @$ = 72.62 ₹
Property(AR, FY'20)
Shipping House . . .1000
Haldia & Kolkata,Mumbai 2376
(As per AR '20 page 140)
MTI Powai, 45 acres 2554
Property Total 5930
(-) Net Debt 1857
Equity Value 11379
Net Tax arrears 213
Loans 227
Total Value 11819
Equity Shares No. Cr 46.6
Value per share (₹)253.62
Source: Dwarka Share Brokers P Ltd ( internal research)
* Fleet :since 27 Feb Cleaves Secs reports 1st time since 2017 share prices of bulkers 1.29×NAV. Similary " SS steel" has shown upward pressure & NAVs for products & crude tankers are up 6%.
▪︎ This value 249.06₹ unlocks by 1) 10 international shipping Cos & ports bidding for SCI Based on its NAV ₹ + as it is the international shipping banking metric to aquire SCI which has the following :
▪︎ 35% tonnage of 16 th largest,2nd fastest maritime market growth internationally..
▪︎lowest BE /day at 7500 $ for tankers & 6000/day for bulkers as per net losses comparison of Oslo & NYSE listed shipping cos' financials Dec 20 qrtr.
▪︎lowest net debt to GAV of Fleet at 0.26
▪︎ NAV of Shipping Corporation of India 125 ₹ ( consol) Dec 20
Possible bids based on the aqu