Shreyas Shipping & Logistics Ltd

Shreyas Shipping & Logistics Ltd

Shipping

Market Cap.: ₹ 476.20 Cr.

Current Price: ₹ 216.85

Book Value: ₹ 106.28

Stock P/E: 19.76

Dividend Yield: 0.60%

Face Value: ₹ 10.00

Company has good consistent profit growth of 38.62% over 5 years

Company has a good return on equity (ROE) track record: 3 Years ROE 29.31%

Competitors:

GE Shipping company

Dredging Corpn

Shahi shipping

Global offshore

Most of them does seem to be great competitor.

The company performed too well in 2015 out of the blue and then flat or less. Current year is also bad.

Net profit : 30 with margin

Sales is growing but not net profit why ?

Less margin business?  Raw material prices not constant?

Operating profit is also okay growing

Need to read balance sheet properly. Seems complex business

Although price of share is cheap can bounce if there is some growth in profit.

Price is two times book value

Debt equity ratio is 0.54

what if a vessel goes down? does it happen like that .. Fleet look very old like 20 years old or even older

Too much operating cost..

How does shipping compares with other ways of shipping.. check that .. Delay in shipping? road transport is faster..

Who are the clients … How busy are the vessels? What if vessel is not full? There is schedule of each vessel mentioned in their website.

Roads are getting congested ? Rails are overloaded? So offshore transport?

A truck on Indian roads can cover 60K –1 Lacs km, while in the US, a truck can travel up to 4 Lac km a year. Also, World Bank has estimated that trucks delays at checkpoints costs our economy anywhere between INR 900 Cr to INR 2,300 Cr.

However, coastal shipping presently accounts for only 7 per cent of overall cargo movement in India. Promotion of coastal shipping is essential due to the potential economic and social benefits it could confer. Hence it is important to address issues such as route development, capacity additions, and incentives by reduction in fuel bill, logistic cost, impact of land congestion & pollution on national economy and the environment. The Ministry of Shipping has taken due cognizance of the same and is intervening to simplify procedures to enable ease of doing business. Numerous initiatives have been declared during the year making Indian coastal shipping quite competitive with other countries.

The last mile connectivity in case of coastal shipping is economically viable only if the producers/consumers of the shipped goods are within a distance of around 100 Km from the loading/unloading point at the port side. This last mile connectivity often proves to be a challenge in India driving up the overall cost of transportation via coastal shipping. Availability of dedicated infrastructure will go a long way in promoting coastal shipping as a mode of freight transportation.

Fuel oil fluctuation

Lot in Reserve and surplus

Lot like airplane business oil dependency?

Final Verdict:  Buy

 

Disclaimer
I am very new to value investing and this is me taking random notes just for myself. Please don’t base any of your decision on these write-ups. That will be foolish.