Categories

10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Archives : Old artciles

Sunday, June 2, 2019

Positive on the Shipping sector:-


Positive on the Shipping sector:-

After manufacturing here comes another sector(though cyclical) which after doing a lot of scuttlebutt,we are pretty convinced is going to soon make a lot of money for the investors. The perfect way to play the Sector is by betting on something which has been in existence since last 70 years and kept its head still while others winded up. Great eastern shipping  is your evergreen giant which is an amazing capital allocator, remains the best pick in the sector. The last man standing in quintessence is deploying massive capital in the business after a gap of 10-11 years. The Annual report is a fantastic read too. Pls don't look at the accrued crap basis of pat accounting but a cursory look at the OCF will tell one the reality..Its Close to 2-year lows and down 37% this year, in line with the mid cap debacle, but mostly because of some Rs.500 cr of Impairment Charges (on selling old ships and rolling over into new ships). Plus another Rs.500 cr over 2 quarters of Re depreciation (notional accounting charges, because the asset appreciation is not accounted but the Derivative losses are booked. Also, gains from Re depreciation in Freight is not accounted), which have depressed PAT, but don’t affect cash flow. 

Just like manufacturing co this co too posses huge operating leverage. With little capex and inevitable grand cash flows,easy to assume it will repay/prepay debt which will further boost profit. Tailwinds signs are visible after long long time. Ballast water treatment+IMO 2020+ the bigger picture which is India has 4.5% of world GDP, about 7% in PPP, and its biggest Shipping company is at 4000crs (only 4 Shipping companies in India, only $ 8 bn of Freight carried is under Indian flag). In every long cycle (Japan, China and earlier Greece/ Norway), a long growth cycle creates huge Shipping companies. India has only GE Shipping as a major bankable player.Indian freight growth is at 2.5 times worldwide merchant volumes growth. This will continue. Company though May not move for 3-6 months but it would be hard to lose money from this amazing co.Happy investing guys.

Btw : Happy to introduce our Sebi registered investment advisory services. Please click the below link to know more about it.
tinyurl.com/y62ttkjo

Regards,
Team Equitywealth 
www.equitywealth.co.in

No comments:

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: arunsharemarket@gmail.com Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.
 
x

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner