Investment Idea -5 G E Shipping : Smooth sailing

G E Shipping : Smooth Sailing ahead !
Investment Guru recommends Investors to buy G E Shipping from a medium to long term perspective

CMP : 140.50
Target : Rs. 190 (3-4 Months)

What makes G E Shipping a good buy ?
1. G E Shipping is a high Dividend paying company. The company declared dividend of Rs. 9 last year. This stock is a great pick for Investor betting on dividend yield.

2. The company has earned a profit of Rs. 809 crores last year, which was 72% more as compared to previous year.
3. Total Revenues were up 48% at Rs.2119 Crores
4. The global oil demand is expected to rise by at least 2%. This will result in higher supply for oil and consequently higher business by shipping companies.
5. The tonnage rates are expected to see a marginal drop which will be compensated by the higher volumes.
6. The company has posted a robust EPS of Rs.43.81 per share as compared to Rs.22.63 last year.
7. At current levels the stock is trading at a P/E of just 3.2 which makes it a attractive investment at these levels.
8. Mutual funds are reported to be accumulating the stock at the current levels.

Happy Investing !

19 comments:

Anonymous said...

Dear Rajesh,

I have to make a portfolio of mid cap stocks.
Pls suggest 10 stocks, and their level to enter.
GE Shipping would be among them.

Thanks.

Bye

Arvind

Rahul Munjal said...

is it right time to enter the market?

Mahadeo said...

If it rains by next week.

Rajesh Soni said...

The markets are struggling to get a direction at the current levels..and the coming week or two will be decisive in taking it a direction....I would suggest that one should be very choosy in buying at this satge and be vey stock specific....Buy on value picks..they will perform irrespective of the index.
Avoid stocks which have run up very fast in the last month or so...
Happy Investing..

hits7 said...

Sir
Thanks for ur valuable advice in past .I wud like to know ur views in order of preference on the IPOs:Yes Bank,Nectar Lifescinces,MSP Steel,Syndicate bank and any other forthcoming IPos whic I m not aware of?

kumar said...

Dear rajesh,
Is it really worth while to enter ge shipping or shall we wait till it settle down?.
Appreciate your valuable suggestions.

Sushil said...

Dear Rajesh,

Other company in logistics is "Transport Corporation of India Ltd" . PE is high 21 but constant dividend paying company and good business ahead. Do you have any suggestion on this company?

Thanks,
Sushil.

Rajesh Soni said...

Regarding Sushil's comment
Hi Sushil
I have not tracked it yet..

Rajesh Soni said...

Regarding Kumar
Hi Kumar...
You can wait for some time till the market settles down...But it's a value pick for medium to long term . so shouldn't matter much..

Rajesh Soni said...

Regarding Hits7,
Hi,
MSP steel
Nectar lifescience
yes bank
syndicate bank

Anonymous said...

Dear Rajesh,

Which one is good between MSP Steel & Nectar life,
I am planning to apply in both IPOs,If I have the ample amount, should I apply till the limit of Rs. 100000.00 in retail?
Pls. reply, alongwith your fundamental views on both companies.

Arvind

Jonathan Anchen said...

Hi Rajesh,
I visit your blog often. Very incisive and well reasoned posts. Please keep posting.
Thanks
Jonathan

Anonymous said...

Hi Rajesh,
can you put up your analysis on the centurion bank and bank of punjab merger ? I have bank of punjab in my portfolio. Should I hold on till the swap ratio is decided ?
Thanks

Anonymous said...

Hi Rajesh,

I have applied for Shree Ganesh Forgings for 1530 shares in 2 accounts individually.
But i have been allotted only 170 shares in one account.
Are the allotment done on lottery basis?

Pls. reply

Arvind

Rajesh Soni said...

Yes Arvind. It's based on lottery.
I also got 170 Shares alloted.
All the best for listing!

Sushil said...

Dear Rajesh,

Do you track Shipping Corporation of India? PE around 3 and last dividend Rs. 7. Currently quoting at around Rs.140.

Thanks,
Sushil.

sunil kumar said...

Hi,
I check your page regularly. I am also interested in GE shipping but waiting. Can u give ur opinon on Varun Shipping too? Which will be better?
Regards,
sunil kumar

Rajesh Soni said...

regarding susheel's comment:
Though I do not track very closely, but I found GE shipping a better bet than SCI.

Rajesh Soni said...

Regarding Sunil Kumar's comment :
Hi Sunil,
Thanks for the confidence you have shown in the blog. and I assure that you will find it useful.
Regarding Varun shipping:
The fundamentals look good and the stock has an advantage of being in small cap. Current valuations are in line with other shipping companies. So in case you are invested , I would suggest hold on a long term basis.