Sical Logistics Ltd
Sical Logistics Ltd - an integrated multi-modal logistics player for bulk and containerized cargo and offshore logistics
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Chennai-based Sical Logistics plans to invest Rs 1,700 crore to develop a nation-wide multi-modal logistics network, including cargo terminals and rail lines. It will invest Rs 1,100 crore to develop two cargo terminals and an additional Rs 600 crore to bring railway connectivity to its terminals.
While an iron ore terminal will be developed at Ennore with an investment of Rs 500 crore, another Rs 600 crore will be invested for a container terminal at Chennai in partnership with PSA Singapore. MMTC and L&T are partners in the dedicated iron ore terminal being developed at Ennore, which is 20 miles north of Chennai. Company officials said that MMTC will holds 26% stake in the project while L&T will have an 11% stake. Balance 63% will be held by Sical.
Confirming the move, Sical Logistics CEO Sudhir Rangnekar said: “MMTC has given us upliftment guarantee for 3 million tonnes of iron ore in the first phase of the project. The terminal will be used to transport Bellary-Hospet iron ore to Mangalore and Goa.” The terminal will be equipped to handle 35,000 tonnes of iron ore per day and will have a throughput of 1.2 million tonnes. The total traffic handled at the port is estimated at about 12 million tonnes.
It will also have berthing and off-loading facilities for large-sized bulk carriers such as Panamax and Capesize vessels. Panamax ships are those which are built to pass through the width of the Panama Canal. Capesize vessels are those which have been designed to pass through the Suez Canal and have a carrying capacity of 175,000 DWT.
Sical’s Chennai container terminal will be equipped with rail evacuation facility for cargo. So far, most container terminals use road evacuation for cargo, which takes seven to ten days. The line, which will connect the Satva terminal at Chennai to Delhi’s mainline, will also be used to transport automobiles and will service major car manufacturing companies based in Chennai. The company plans to buy about five trains by 2009 and increase this number to 13 by 2011. The total investment for buying these trains will be about Rs 160 crore.
The company is also buying three door containers from China for other consumer goods to be transported on this route. “Each container will cost us about $3,400 and the plan is to acquire 400 of these boxes,” he said. The company is planning to build railway cargo terminals at Panvel in Mumbai, Bangalore and Chennai which will also service the incoming and outgoing truck cargo.
-manish
Sical’s second rake commences operations on Chennai-Delhi sector (12th August 2008)
MUMBAI: Sical Logistics Limited, an integrated multimodal logistics solutions provider, initiated the operations of its second container train from the Melpakkam rail terminal near Arakkonam, to a private rail siding at Patli, near Gurgaon.
Sical Multimodal and Rail Transport Ltd, a 100 per cent subsidiary of Sical, obtained the category I pan-India license in January last to run container trains for exim and domestic cargo and recently took delivery of second rake from Titagarh Wagons in J uly.
The company entered into a strategic tie-up at Melpakkam with Sattva Conware. Under the partnership, Sical will have access to Sattva’s infrastructural facilities at Melpakkam.
Speaking on the occasion, Mr Ashwin C Muthiah, Chairman, Sical Logistics said, “We are pleased at the expansion of our container train operations to the North South corridor. Private rail transport offers an interesting alternative to road transport with the promise of improved service levels along with reasonable time and cost savings to the customer.”
Sical Multimodal is the first private player to run container trains on the Chennai-Delhi sector. Its second container train is carrying general cargo like, cars, steel popes, malt, raw rubber and industrial chemicals amongst others.
Sical Logistics to finalise location for Jurong Port joint venture in 3 months
Santanu Sanyal
Kolkata, Sept 2
Sical Logistics has identified several locations on east and west coasts for the port project it proposes to launch in partnership with Jurong Port Ltd of Singapore. “We will finalise the location within the next three months”, Mr S. Rangnekar, Managing Director and Group CEO of the company, told Business Line on Tuesday.
The cost of the project is estimated at Rs 1,500 crore and Sical is to have 51 per cent equity stake in it and Jurong, the balance on a debt-equity ratio of 2:1.
The proposed port, when ready for operation, will handle bulk items, mainly iron ore exports and coal (both coking and thermal) imports. “To start with, it will have two berths at the most”, Mr Rangnekar said drawing attention to the difficulties being experienced in selecting an appropriate site.
There are so many issues which, as he explained, needed to be sorted out such as the availability of 500/600 acres of land in one lot, proximity of the mineral to be exported, the connectivity, the growth prospects in the hinterland, freedom from political militancy and, capping it all, a helpful State Government. Also, the proposed project must be located away from another port.
Ennore port venture
Sical Logistics, it might be noted, is already involved in several port projects. For example, it is the majority partner in the iron ore handling facility being created in Ennore port, L&T and MMTC being the other partners.
L&T is holding only 11 per cent stake and MMTC, as and when it joins, 26 per cent, the balance 63 per cent going to Sical. “Right now, we are holding 89 per cent which is to come down to 63 per cent as soon as MMTC joins”, said Mr Rangenekar exuding hope that MMTC would join shortly.
The first phase of the Ennore iron ore berth is scheduled to be commissioned in 2010. While the total capacity of the project is estimated at 12 million tonnes, it will be limited to six mt in the first phase.
More participation
Sical also participates in two other container terminal projects, one each in Tuticorin and Chennai.
While the Tuticorin terminal in partnership with PSA is already functioning since 1999, the one at Chennai, also in partnership with PSA, is to be commissioned in September 2009. In both the terminals, Sical is a minority partner – 37.5 per cent in Tuticorin and 27 per cent in Chennai.
“We’ve also been shortlisted for the BOT port project in Karwar, designed to handle bulk cargoes”, Mr Rangnekar said adding, “we’ll try to participate in as many BOT port projects as possible”.
Asked if Sical was mulling participation in foreign port projects, Mr Rangnekar replied, “not at the moment”. However, some time ago, Saudi Arabia was planning to privatise berths in Dammam and Jeddah ports and Sical was interested in it. However, the proposal did not make headway, he added.
Excellent!! awesome...I appreciate the way you dig the company's future plan/expectations.
Good information for fundamental readers. I request you to publish the source/link from where you gather this information. It would be helpful for people like me who wanted to know more about the scrip.
Once again many thanks to you, for your great job and sharing your valuable effort on digging the fundamentals.
Regards,
S Thamizharasan.
sthamizharasan@gmail.com
Thanks Thamizh.
Sical to launch freight svcs this year, expand rail ops
Fri Sep 19, 2008 10:04am IST
MUMBAI, Sept 19 (Reuters) - Sical Logistics Ltd (SICA.BO: Quote, Profile, Research) will widen its rail reach to seven rakes and start freight forwarding services this financial year as it expands its cargo movement services and infrastructure, a top official said.
Freight forwarding services are expected to start in 4-5 months and will see the company venturing into the air transport business, which caters to high-value goods, Sudhir Rangnekar, managing director, told Reuters on Thursday.
"We are hopeful of getting into freight forwarding this year. We will start may be a joint venture...we've got an internal company which has all the licences," he said.
A partnership will help build the relationship-driven business quicker and give it access to an international chain of freight forwarders, Rangnekar, who is also the group chief executive, said.
"If all the services are under your command, the loss of time in cost at the nodal change is minimum and there is smooth movement from mode to mode, plus there is good visibility and better tracking," he said.
While small now, the company expects railway services to bring in 60 percent of revenue in 10 years, but contribute only a quarter to the bottomline as it is a low-margin business, he said.
Currently, one of Sical's rakes services Hindustan Copper Ltd (HCPR.BO: Quote, Profile, Research) while the other caters to the Delhi-Chennai route.
"The money is going to come out of the terminals and not the railway traffic. So those who own the terminals, they will have the long staying ability in the game. But at the same time you can't be building terminals everywhere," he said.
India's rail sector, is increasingly competitive as more private players begin to launch services, he said.
Indian Railways allowed private firms to operate freight trains in 2005/06 to handle growing volumes of traffic.
The company also wants to expand its presence at ports and plans to set up a bulk port for iron and coal with Singapore's Jurong Port, for which it will require funding, said Rangnekar.
"We are planning a greenfield port for which we will require funds but there is still some time until we enter that," he said.
Andhra Pradesh, Orissa, Karnataka, and Tamil Nadu are possible sites for the project that will require at least 600-700 acres of land, he added.
CONTAINER TERMINALS
Sical, which has a container terminal each in Tuticorin, Chennai and Vizag, plans to have seven by 2012 with a total capacity of 350,000 TEUs.
The new terminals will come up in Mumbai, Bangalore, Pipavav besides a second in Tuticorin, L.R. Sridhar, director and chief executive officer of Sical Distriparks Ltd, which handles the terminal business.
This year, the terminals are expected to bring in 800 million rupees in revenue and handle 150,000 TEUs, boosted by the growth in its Chennai operation, he said.
In FY08, the revenue of the unit, which handled 133,000 TEUs, was about 600 million rupees.
"EXIM (export-import) trade is growing and there is a movement from bulk to containerised cargo," he said.
Macquarie Bank Ltd sold 2 million shares on Sep 18th 2008. Thats is the reason for the massive fall.
Go ahead and lap the stock.
-manish
Sical Logistics Ltd has informed BSE regarding a Press Release dated October 23, 2008 titled "Sical deploys additional rake on Delhi-Chennai sector".
Press Release:
"Sical Logistics Ltd, India's leading integrated multimodal logistics solutions provider for bulk and containerized cargo, has initiated the operations of its third container train on the Delhi - Chennai sector with the delivery of a third rake. Sical Multimodal And Rail Transport (SMART) Ltd, the 100% subsidiary of Sical operating and managing container trains, plans to add ten more rakes in its fleet by 2011.
Sical obtained the category 1 pan-India license in January '07 to run container trains for EXIM and domestic cargo. The Company initiated the operations of its first container train from Hatta Road Railway station in Balaghat District, Madhya Pradesh on March 05, '08, providing complete multimodal logistics solutions to M/s. Hindustan Copper Ltd (HOL). The Company has since transported about 0.5 lakh tons of copper concentrates, copper cathodes and finished products of HCL to and from Ghatsila in Jharkhand, Khetri in Rajasthan and Taloja near Mumbai. Sical's second rake is deployed on the Delhi - Chennai sector carrying general cargo like cars, steel pipes, malt, raw rubber and industrial chemicals amongst others. The Company has transported about 20,000 tons of cargo on the Chennai - Delhi sector since August '08.
Speaking on the occasion Ashwin C Muthiah, Chairman Sical Logistics said, "We are pleased at the addition of the third rake to our growing rail business. Its deployment on the North South corridor enables us to offer better services to our customers with enhanced capacity and frequency. We plan to add a fourth rake in our fleet by December '08, to be deployed also on the Delhi - Chennai sector. Our EXIM business will commence operations by January '09 with the development of the second container terminal at Chennai port, which will further strengthen our competitive position in the container train segment."
The deployment of the third rake on the North South corridor promises improved frequency with one train every four days which will be further enhanced with the addition of the fourth rake, to three trains a week. The Company has a strategic tie-up with Sattva Conware Pvt Ltd, for establishing the ICD at Melpakkam, enabling it to easily service the industrial belt of Sriperumbudur, Ranipet, Trichy, Puducherry and Salem. The Company also has an agreement to access a private rail siding at Pat near Delhi which it currently utilizes for the operations of its second rake."
Q2 FY09 EPS at 1.92/- per share (without MTM losses) and at -7.92/- per share due to MTM losses. These MTM losses are due to outstanding FCCBs.
-manish
I am trying to find out the bond price of sical in singapore exchange for the FCCBs that it raised 2 years ago. Since the share price has gone down 90%, I am also sure its bond also would have been marked very low. Would like to know if its actively traded.
However, I am not able to get the code/ticket for the bond in the sgx site. Anyone knows how to get this?
-manish
One more separate input on sical - why the share is down by more than 90% - because of three reasons:
1. the shipping sector is almost dead for last 1 month. Search for baltic index to gain more insight in the price.
2. This setback apart from USD strength against Rupee.
3. Domestic slowdown effect.
-manish
do you have any idea on Q3 FY 08 results of Sical
Please let me know if you have any insights on the Q3 FY 08 performance and likely year end results to be posted
sanjay,
Q3FY09 results are EPS at 2.11
Q3 FY09 EPS at 2.11/- per share (without MTM losses) and at -1.52/- per share due to MTM losses. These MTM losses are due to outstanding FCCBs.
-manish
Sanjay,
It is difficult to predict the FY09 EPS due to uncertainties. However, I am making a calculated guess.Full year expected EPS should be around 8/- (without MTM). They didn't have any railway rake additions in their business from Jan-Mar09, so expect revenues to be flat.
-manish
you are briliant. Thanks.I gather the AGM is end June. The BCD has turned around and with the Rupee strengthening alongside the improvements in the Baltic Index at an est EPS at 8 and Industry PE at 17 (???)we could see this stock touch almost Rs.130 by year end. Would you know when the revenues from the Ennore JV will flow, udnerstand they have achieved financial closure for the project.
Sanjay,
Ennore project is a JV project named as Sical Iron Ore Terminal Ltd (SIOT) with 63% stake for SICAL, 26% with MMTC and 11% with L&T Infra. First Phase launch planned around March 2010 with 6 MTA capacity out of total capacity of 12 MTA. More than 85% financial closure has already happened for phase 1 during March 2008. Let’s see if its on track or any delays.
Also the container trains (currently 3) are expected to touch 17 by 2011 as per original plan, I believe there is some delay is this too.
PE of the leaders in this space should be 15-20. Regarding stock prices in future for Sical, its anybodies guess. However, the conditions are turning favorable.
-manish
Many thanks for your inputs. The recent movements in the stock do give room for optimism. Would you know what are the key revenue drivers for the company? As I uderstood BCD is the biggest, will that be linked to Exports? On another matter I wonder why the company has not updated its website on thrid quarter results. And do you know if they have guidance on Q1 results for 09? It seems by the time they declare 08 results the first quarter would have ended. This is usually a bad accounting practice which companies opt for to hide poor results isnt it?
Sanjay,
Can you let me know what do you mean by BCD?
The main business for Sical is: multimodal logistics services.
Indian accounting standards allows companies to forgo separate Q4 results and club with audited FY results. I agree that its not good.
The Q3 results of sical are there in BSE / NSE.
No guidance given for Q1 FY10.
-manish
thanks for your comments. BCD is bulk container division, which i think was once their biggest revenue divisions. Though am not sure now how it is? By the way your estimate of EPS 8 in the earlier post...does that net off MTM losses on FCCB or is it likely that they dont have any more FCCB losses ? I am unable to locate the FCCB listing on Singapore SGX..
Yes, BCD is still one of the biggest revenue earner. BCD is onshore/inland logistics business. Also, BCD is now both bulk and containerized cargo. In offshore, they have one vessel and one dredger.
For more info, you can read:
http://sical.in/speeches.htm
You can also read their FY08 annual report
I have mentioned earlier that my estimates are without FCCB MTM impact. Since its a simple projection, it can go entirely wrong.
I too couldn't find their bond details in SGX.
I understand the new Chennai terminal i.e the JV with PSA Singapore is operational from today. So the revenue impact should come in next year. Would you have a feel what kind of earnings they foresee from this JV?And how do you see it impacting the EPS?
Sanjay,
Frankly speaking I haven't gone for any revenue calculation for the second port terminal at chennai. The total handling capacity of that terminal will be 1.4 TEUs with starting handling capacity for this year to be 0.5 TEUs. We will get an indication of revenue hopefully in Q2FY10.
Thanks for doing a great research in this company.
-manish
thanks for that info. Indeed not much information is available to research, but my view is that the stock has significant upside potential. Its book value is 68 and likely to increase with the capex invested in the last 12 - 18 months. Combined with the new revenue streams which have now become operational I see this stock having signigicant upside potential- my own forecast based on what you say in your blog and inputs from elsewhere is that it could touch upto Rs 120 by Mar 2010(given the rise in the BAltic index) assuming EPS of Rs 10 including provision for MTM losses.These losses will in any case come down significantly since Rupee year end forecast is for Rs 45.00 Your thoughts?
Sical Board Meeting I udnerstand is on 17th June. Results for FY 08 will be announced. I am hoping a btter than expected result, are you aware if DBS Cholamandlam is buying further in this counter?
Yes, board meet on 17th jun.
As per my knowledge DBS Chola small cap fund has sold more than 50000 shares in last 2 months.
In May09, another FII has sold heavily
In Mar09, Karthik Menon had bought 65000 shares from open market.
-manish
useful insights. Seems difficult to analyse the current downward movement in price, maybe its the selling by FII and DBS? I think the results will be crucial to know if the company is on the turnaround path or that it will still take more time.
how do you read year end the results of Sical Logistics.The share price has already nosedived
Q4FY09 EPS at 1.64/- (without MTM losses) & Full year FY09 EPS at 7.41/- (without MTM losses).
FY09 OPM has improved compared to last year.
Note that they have changed their Accounting policy based on recent AS11 amendments for Forex losses.
-manish
thanks have a few queries :
1. Does the new accounting standard fully write off all MTM losses on account of the FCCB? Will this mean that from now on there wont be any more MTM losses due to exchange rate fluctuations on account of current borrowing?
2.As a result of this would we see a signigicant rise in EPS for Q1 FY09.?
3. Are you aware as to what do they mean by extraordinary items in their P&L account ?
Grateful for your inputs
Dear Sanjay,
AS11 amendment is an accounting gimmick... the risks of FCCB and MTM is still the same.
Read more on AS11 and its amendments on 31st march09 to get the answer for all your 3 questions.
-manish
tried to read through AS 11 pretty confused as I am not a Finance person.So I guess my questions remain in case you have the time would be grateful for your response. Many thanks in advance
As per AS11, the MTM losses that were adjusted against P&L account of a financial year can now be amortized in 3 years i.e., upto March 2011. So, the companies have flexibility to show more (much more profits) compared to current handling of MTM losses.
The MTM losses for sical for Q1, Q2 & Q3 were adjusted as extraordinary item (reversal of MTM to a great extend) in Q4 by virtue of AS11 march31st 2009 amendment.
I hope now you have the answer for all your 3 questions.
Would it be correct to conclude that rupee depreciation will continue to impact bottom line in the future years as MTM losses have not all been written off.
IS there any particular reason you can think of as to why this stock trades at a much lower P/E than its Industry peers?
Given that Q1 09 will see addtional revenues from the chennai PSA container terminal I would have thought that the market would discount the stock at a much higher rate. Are we all missing something ?
hi this is vivek.
i have been buying sical recently below 40.
just going through all i know that whatever m2m loses/profits are made are just book enteries.nothing fundamentally changes except the fccb if converted to equity,doubtful at 600 rates.
just guess how the company will be able to settle the debt of 300 cr fccb.if it becomes a loan then the co will have 30 cr interest outflow each year..making flattish profits.
its stake in chennai cfs is a jv with 27%.hence only sical share of revenue will be reflected in its books.
elsewhere also it has subsidiaries etc where holding is below 51%.
hence only proportionate profits will be reflected.
overall,to conclude i know that the newworth of co may be 300 cr..
in infra/capital intensive projects it could be earning 18-24%roi on net worth.so u may calculate the profits it will be making.im going by that ..
it will get great boost once ipo od sical infra/issue of qip from where it can enhance its networth.then it will really be a multibagger.
vivek that was a useful input. I too am very optimistics on this share. Basis your write up I can now see why its PE is low-I never realised its net worth was equal to it s FCCB borrowings ! I went by the fact that they are the market leaders and there capex program will yeld returns over the next 24 months, and the fact the the P/B is still pretty low.... though I realise now that the BV maybe on account of the FCCB itself ! SO the risk is really on how well the capex program is executed and the returns that Sical logistics secures from it.The first milestone would be Q1 results as it should reflect the earnings frm the Chennai terminal.after that the next milestone would be June 10 when the conatiner train revenues should be coming in and last one I think would be completion of the Nagpur terminal in 2012. I am not aware if they have any QIP or IPO planned. They already have a pretty high equity base so any further equity infusion may actually hurt shareholder wealth i feel, as investors would now be looking to first see how well the company has utlised and executed its current expansion plans
hi sanjay
vivek here.
well im bullish on sical because in the next bull phase it will have a dream to sell..may be that will be a good exit point.
with yes bank and idfc behind it could be moving here there before crossing 80.
i just cant know why it is in trade to trade and when it was placed there.it would have crossed 70-80 if it was not in t2t.
look.this group has a bad history of showing big picture.but with idfc behind it would be a worth looking.
some great stocks worth looking could be srei infra,yes bank,vimta labs.rest just play for 2 baggers in psu banks etc.....u will see going for multibaggers one always deteriotes quality and leave out 2-3 baggers...... idea,allahabad bank,central banks of world are safe and were best investments bets around 40 levels.go like that
hi sanjay,
vivek here.
i was also just concerned on my sical investments as i have been adding around 40....now as of having 20000 shares...5000 bought two days back...just getting in/out but maintaining around that qty...not thinking of adding unless see more clarity and time to pass buy....
i also wondered how the management say they targer revenur of one billion dollar by 2011.that was made at time of issu of fccb and stocks to idfc.
whatever in the bull run next (may be around 2013-2015)it will have plenty of stories to sell....
enlighten me.....
interesting inputs vivek. Would be nice to know what manish feels. My view is that given the low float of the stock you should only be in the counter for longer terms....its certainly not blue chip for trading in and out....i think its a high risk stock and hence play the gamble only if you are convinced.....my guess is by 2010 june the story would be fairly clear
hi sanjay
when was sical transferred to trade to trade segment...and what were reasons.
may be that will help
vivek not sure when Sical Logistics was shifted to T. But given that it lost nearly 80 % of its value in 12 months the volatality and low float would have been the key reason i think. Though in the long term it really doesnt matter. As for some other multibaggers in my portfolio are Birla Cotsyn, Niraj Cement and Structurals, Nu tek India. Though Birla Cotsyn sounds like a dud to me ! I took the gamble given the new Thrust on textiles and value added garment manufacturing likely to be seen in the new budget thanks to an aggresive Textile Minister. But I am still most heavy on Sical Logistics !
All non-sical related discussion has been deleted.
My research on Sical
====================
Sical had taken $75 million loan around 44.5/- in April 2006. Since FCCB won't be converted to debt mostly, at 6.32% rate, the overall debt turns out to be $98 million. Based on FY08 balance sheet, equity+reserves would be around 370 crores and overall debt (with FCCB converted to debt) would be around 640 crores. This is main reason that market is not valuing the stock at 15-20 P/E. For FY09, EBIDTA is 95 crore and net interest outgo is around 16 crore, so interest payment is comfortable.
Here are the trigger points for Sical:
1. Sical cargo logistics business is mainly into coal, iron ore, fertilizers and cement transportation. Though coal and fertilizer logistics were stable even during recession, iron ore and cement logistics business got effected badly due to severe slowdown. Now with economic and infrastructure projects revival, both iron and cement logistics business will gain momentum.
2. Train logistics business (4 racks currently) should improve and they may buy more racks based on economic revival.
3. Ennore Iron ore terminal project commencing operation in March 2010 is a very big trigger. Sical has assured customer for this terminal in the form of MMTC.
4. Potential D/E ratio of 1.8 is a concern and they have to do either QIP, rollover loans, restructure FCCB or buyback FCCB at discount.
5. IPO of Sical Infra assets.
6. Selloff of Sical Torino (the oil exploration PSV vessel) and/or Sical Portofino (dregdging equipment). These would fetch them around 40-50 million dollars.
7. Lot of actions for Sical during Next FY (April 2010 to March 2011).
Unless another major crisis crops in the world, the worst is behind Sical.
-manish
that s a very useful insight- so at last the mystery is solved !High D/E is something markets dislike and hence Sical would continue to be a high risk stock.I understand they have made several attempts to sell Sical Torino but havent been able to do so. Essentially Ennore and MIHAN (Nagpur)projects can increase their Debt Servicing Capability but it s quite likely that the stock may take longer than expected to deliver smart returns because the D/E ratio wont change in the short term.(1-2 years). I must say based on Manish's insight on the D/E ratio I am more nervous than ever before on this counter. Manish can you highlight why the P/B looks so low when debt is so high as techincally if the company has to be sold its debt cant be serviced ! OR am I missing something ?
manish had one more query would you have a breakdown of how the debt has been deployed? IS it all in Capex? or is some portion being used in WC? I assume one portion would be the Ennore Terminal, the other would be rakes acquistion and the third would be MIHAN. IS it right to assume that at 6.32 % (Depreciation of ruppee) debt the ROCE would be much higher and hence shareholders could potentially see a very good EPS once Ennore and the rakes start generating revenues in 2011 ?
sanjay,
Regarding P/B, I believe you are getting confused with enterprise value (EV). P/B is simply (assets - liabilities) or (capital + free reserves).
All long term debts (FCCB) are usually for capex, all short term debts are for WC. I don't have that data with me for sical. Look into their last annual report to get that data. Also, 6.32% was their FCCB coupon rate, NOT the depreciation of rupee figure. ROCE would be based ONLY on revenues generated by the ongoing/completed projects, it has nothing to do with rupee appreciation / depreciation. Yes, if rupee gets stronger to dollar, the FCCB debt liability of Sical will go down and its good for Sical's equityholders.
-manish
hi
vivek here
it has a net worth of 300 cr...so book value may be 70...so p/bv is around .6...
but it has loan of 600 cr...net worth 300 cr...
so debt /equity is 2 times.
vivek, all non-sical discussions would be silently deleted by the moderators. kindly don't post non-sical comments.
hi would you know when is sical logistics going to post its first quarter results.? Also as I undestand there is no more capex spending planned from here on so from now apart from those for which financial closure has been achieved.WE should expect continuing increase in revenues and hence significant decrease in interest payout as % of gross Profit. Given that they comfortably services 16 crores Interest burden last year I see no problem from here on. MAnish what i missed in the dpereciation of rupee comment is that with rupee guidance at 46 for year end the would you agree that outflow on FCCB borrowing may decrease which could further impact earnings positively. And lastly if the earnings continue to grow the high D/E ratio may become a bless9ing for shareholders as earnings will be divided over fewer shareholders.Also for infrastrcture companies D/E 1.8 : 1 i understand is not that bad specially if WC needs are being met comfortably. So I remain cautosly bullish as Manish ahd said 2010 - 2011 will be make or break year.
Hi manish,
Do you have any analysis of the impact that the budget provisions will have on sical logistics? It would be interesting to get a view on this thanks
The budget had been a non-event in many respect. For indian economy to grow, infrastructure has to be developed on an ongoing basis and govt will do its needful to support that. I don't have anything more from the budget.
in case readers are interested sical logistics will announce its critical Q1 results on 31st July. Not much is expected in terms of EPS growth yet
...and AGM is scheduled for Sep 16th 2009.
hi manish any feel for what kind of EPS one may expect from Sical logistics.? Also would you know why is sical s share still so depressed? as i se good volumes with a reasonable debt -equity ratio and well deployed capex plans?
Its difficult to predict the EPS for Q1. The only public announcement were for opening of the chennai port terminal opening during Q1, so expect some additional revenue there.
Regarding stock prices, its anybody guess.
-manish
hi manish would you have some insight on how much role the Muthiah family now plays in the company management. Understand the PE investor has cleaned up the managment team. I believe the Muthiah group have a very pathetic track record in terms of creating shareholder value? Is this genrlly true>
hi manish what do you make of the FY 2010 Q1 results of Sical Logistics. Huge drop in Profits followed by poor performanc eof Container Logistics. Would you see this as a blip or a sign of caution. Are these results on expected lines? Or worse than what you anticipated. The results are available on NSE website
Sanjay,
I can' comment on Muthiah family, however the management seems to be professional. They are rightly focusing on bulk cargo business. Here are my comments on Q1 FY10 results:
1. Standalone numbers are fine whereas consolidated numbers are pathetic.
2. Their bulk cargo is going good, however the offshore logistics business suffered heavily. Looks like they had contract expiry on offshore vessels or renegotiation of charter rates. So, the rates are reset for all future quarterly earnings (its not a blip). This was expected. Unfortunately, offshore logistics business had more profitability compared to other business and this got hit the most I guess.
3. They also indicated that CITPL had some charge (they didn't specify if its one time) on them during Q1. Hopefully its one time.
4. They also indicated that they had slowdown in container logistics business.
5. With economic activity slowly improving, Sical should have slow recovery. Also, they should think of disposing off offshore business itself to destress their balance sheet.
-manish
manish many thanks for the notes. I am wondering what is the % mix of losses from Container Logistics, Offshore Logistics and the charge on CITPL. Are bulk of the losses because of the CITPL charge in which case I should imagine it would be a planned expense. However if the Container Logistics is the drag then one would need to be concerned I think. Also if the Offshore Logistics business has seen rates being recalibrated and its not a blip as you mention then it s an additional cause for concern.ISnt it?
Given all the above one can expect that any turnaround can now be expected only after 2010 as the 9 cr loss would be too huge to cover in the next three quarters.
The only silver lining is the topline growth. Any idea how to find out the actual impact of the CITPL charge and if its one time or it will be a regular expense.
So I guess difficult to conclude if the worst is over or some more bad news in store !
The numbers are not as bad as it looks. Here are my comments for consolidated business:
1. Both standalone and consolidated businesses have grown YoY. Inspite of offshore logistics business topline reduction, the consolidated numbers are higher, it means that CITPL and other subsidiaries have started contributing to the overall business.
2. The consolidated business cost of services and other expenditures have gone up (maybe due to one time expense of CITPL). At least other expenditure should decrease in next quarters. Also, more depreciation and employee cost for consolidated operations which can be tamed.
3. Net loss of 9 crore on consolidated business reflects interest cost and amortization of MTM losses in a staggered way.
4. For your understanding, standalone results reflects "Bulk Business", whereas consolidated results reflects all three divisions viz. bulk cargo, containerized cargo & Offshore business. With economic slowdown and reduction in exim trade, both containerized and offshore business are effected badly.
5. Read the Annual report of Sical for FY07-08 to see the business portfolios. We can expect the latest annual report for FY08-09 in 1st week of Sep09.
-manish
I agree with Manish, this is the cheapest Logistics company available in the south, need to have faith in it. Historically promoters have not created enough wealth
Also, remember their 30% of equity has come over Rs.250/- per share from 2006 to 2008. We all know that its a capital intensive business therefore management has done well in creating a subsidiary to cater to their needs, while SICAL will enjoy the benefits of it. I can't imagine how far it can go however fair to assume that investor with over Rs 250/- should be benefitted by year 2010 end.
hi
vivek this side.
well reading from above i guess u all think that container business comes in consolidated b/s and not standalone.
as of i feel that the jv of the company comes under standalone and not consolidated.also only subsidiary where sical holding is more than 50% comes under consolidated...else only dividend etc income is only shown.
hi vivek here.
well i did not have much resource /time to go through in detail the following.
can u give me how much money is invested in each jv/subsidiary out of the total money sical have(net worth plus loan)total...
and then determine how much of thaat money is invested in assets with yield of above 15% and how much investments depreciated. how much invested in good assets to yeild profits in 2011 etc etc....
and and amount investen in good assets ...no matter when yeild comes should be atted to market cap of the company...
in short out of total loan how much is invested where....example if loan is 600 cr and all 600 cr invested in bad assted then its a negative net worth co..like this..
pls help me on investemnts as i wait for annual reports etc etc
Vivek,
Check the annual report of FY08 for the breakup of investments that you are looking for. We can wait for FY09 annual report for the latest update.
hi
looks like sial wil be moving from here.
i have been holding 10000-15000 shares always as core holding and some as trading....
what kind of investments u have in this co.
if it does not go bankrupt then ts moving towards 120 in next 2-4 yrs.not a bad return i feel.
im just afraid why it bougfht bergen ffshore for 100 million(450 cr)because when i see performance of that co it has nothing in it.i feel it has bought 100 cr worth co for 400 cr...hence loss could be 300 cr here(even if it want to sell this co now at 100 cr)
im betting on ebitda performance in sical....as long as ebitda is above 50 cr im confident here in sical.....vivek
bergen offshore biy raises management quality issues...
I think Bergen Offshoer was bought before the PE firm , IDFC got in Vinod Giri also a full management shakeout has happened and most of the Muthiah family are now out of the company board. The new board looks pretty professional so hopefully Sical wont sufffer the same fate at the other Muthiah family run companies. However the Muthiah family have extremely poor management record and as a results of their poor management quality investors have rarely benefited by investing in their companies. Addiotnially the departure of Sudhir Rangnekar was a big blow too. Is Karthik Menon related to the family or is he a professional. In fact the two key things which are preventing this stock from being lapped up are
a) Poor track record of the family and its management style
b) High D/E which is resulting in concerns on ability to service borrowings unless revenues show appreciable growth
My only other concern remains is in terms of understanding the segment wise losses and how much of the 9 cr loss is because of the CITPL charge and is it fully confirmed if it is a one time charge ?
Regarding the Rs 600 Cr borrowing understand almost Rs 300 Cr was for the Ennore Terminal with L&T which is still to come on stream. About Rs 100 crores for the CIPT and not really sure where the balance went ! So if anyone knows please highlight-hopefully it should come out in the September annual report !
hi
vivek here
for ennore terminal i calculate that its a 50/50 debt/equity ratio..
so 250 cr will come as equity maximum.65% share of sical could be 100-140 cr max is what i feel....
most of fund has gone in to buy bergen and dredger etc etc..
chennai cfs absorb around 60-70 cr.....rakes aroun 40 cr,80 cr present coal trrminal for tamilnad electricity,etc
vivek
vivek,
that is interesting, and if indeed that much has gone into Bergen then it will be a long time before the balance sheet is repaired. Yet the stock seems to have solid support at 40 levels. However if bulk of the borrowings are sunk in Bergen then one cannot hope for much. The silver lining though is that once Ennore comes on board the cash flow will improve vastly as MMTC is already an assured customer. OF course assuming the company does not go bust as at Rs 9 cr quarterly loss this quarter it has alread wiped off 30% of its equity base. Wonder hwo the book value shows Rs 68 ?? IS it that Bergen has been valued at purchae price and hence its resulting in a grossly exaggerated book value?
hi
well 9 cr loss have one time costs also.this co can never go bust because they are 50 yrs old and losses since begining and still surviving..
i calculate that around 40-50 cr needed maximum for loan interests...and if ebitda is around that level there is no downsizing of networth of co...
i feel ebitda will be 50 atleast so no problem of bankrupt...over long term i see psa taking over the company...who knows or its subsidiaries....
networth divided by no of shares gives book value.
bergen or any asset bought at high price is represented in b/s on asset side...suppose its 400 cr...but that wont touch net worth(eq plus reserve)...it will be matched by a long term debt of 400 cr in right side(liabilities)...so nothing touches book value/networth...
only when there will be permanent loss/devaluation accounted for by auditors/co then only reserves will be substracted by that amount and also the asset....decrease in asset side(bergen) and decrease in liability side(reserve)...this way balance sheet will be closed.
the problem is if i consider loss in valuation in bergen at 250 cr...then whole networth is wiped off.but that does not show that co has nothing....it has investments of 200-300 cr in other projects.that will be a accountry entry ut co cant stand that now..as networth will become nil.
it will take 3-4 yrsfor the co to stand up and make 200 cr for loan security ....
u need 2-3 yrs for the mess to be settled.
vivek
vivek,
thanks for that.IT seems this stock is riddled with risk, unless PSA decides to buy it out. The fact that IDFC has got rid of the Muthiah family gives pointer in that direction, also in Karthik Menon's interview he hinted at a similar option..given the poor record of the Muthiah family it will be difficult for them to secure a QIP so the best way would be to divest majority control....I suspect it may happen sooner rather than later...and if that doesnt happen then the Muthiah family will definitely create many more Bergen Offshore !
hi
vivek here
sical looks like it be be in make or break only after 2011...
im exiting and selling this stock ,hope to get into only when picture cleares in next 2-3 yrs..i have sold in this little pullback...
i will wait for 1-2 yes and then access
I have also sold almost a third of my holding after the Q1 results. I am waiting for the Sept EGM to make a call on the balance. Also maybe worth watching Q2 results when we will know the real picture. I am not sure if there are any better bets given the high valuations now
Manish, would you know how the Mitsui deal for the ENnore automotiveyard effects Sical? Is Sical investing in it or is it only a management contract ? Also do you have any insights on the MIHAN terminal is it on schedule?
Sanjay, here's the detail of JV known to me:
It’s a JV to manage a port of Ennore (not owned by Sical) for export of Nissan’s car. The new venture, which will be incorporated in later part of year 2009, will undertake yard operations such as storage and pre-shipment processes for export of completed cars from Nissan’s new plant at Oragadam, near Chennai. The export of cars to Europe would commence in second part of 2010. So, it’s a plus for Sical.
manish,
thanks for the update. Would you have a revised view on sical or would you still go with BUY
Sanjay, Any company with stressed balanced sheet is a risky bet. I can see that you are quite worried on your Sical investment. If it forms a big portion of your portfolio, then I suggest you to prune it a bit and put the money in other stocks that offer value. You should be able to find a good number of midcaps/smallcaps even now.
For me, Sical is neutral for the time being and I would wait for updates on progress from the management.
-manish
Manish, indeed I am worried as you rightly point out. Though my entry price was 27 so i have room to wait. I think a good exit point would be after the EGM. Would you agree?
Not so sure about other stocks as the market has already discounted most blue chips and good small and midcaps....feel free to share any insights you may have
By the time the annual report is out and reaches us for any useful analysis, the market would have discounted that information. I can't comment on the exit time - its solely on the individual.
Its a good strategy for a retail investor to diversify in many stocks of different sectors - there are many stocks specially in mid/small-cap holding values and the next rallies will come there. Most of these are already shared in smart-indian group/blog by me. Here are some of them from different industries - Time technoplast, Bilcare, Micro Tech, Geodesic, Royal Orchid, Jetking Info, ICSA India, Zen Tech, Ion Exchange, etc.
On the stressed largecaps, go for Unitech and Suzlon.
In any investment be it Sical or otherwise, patience is the name of the game.
-manish
YEs Manish many thanks. In fact I shifted 30 % of my holding in Sical to other stocks. That has helped, though I guess I will still buy back sometime in MArch as I contnue to remain bullish on this company over the longer term. As we have discussed earlier it has many advantages and with IDFC on board and the Muthiah family out I don t think they can bleed shareholders anymore.
Year end 2010 now would be the net big mielstone ! till then its RIP -Rest in Peace !
hi ,vivek here
well whatever the signs on sical,it has not moved down on bad results of q1,although not so bad.
in fact after bad results it has moved up,that is best sign of a confirm bottom....because sical has investments of 1000 cr in logistics....which have higher roi at 17-25%....so even if i substract bergen offshore it has 500 cr invested in logistics...not bad....with that type of long term investments it should have above 1000 cr market cap in good markets easily.so its a stock to buy and forget for 2-3 yrs...
vivek
Well the good news is that the stock has moved to B group. Which makes it more attractive now for trading alos
The fundamental change in last week for Sical has been the greater draft of the berth at Chennai that allows it to support bigger vessels with 50000 MT load as opposed to 25000 MT load. This makes the Port based cargo shipment more attractive proposition.
also full impact without capital charge for second terminal of Chennai will come in Q2 as I understand so one can good results. Incidentally suprisingly it seems offshhore logistics is also looking from its earlier lows. Would it be safe to then remain INVESTED. isnt it. Understnand there is some further augmentation also taking place in the Chennai berth
the Annual report seems to suggest that Sical is on track with its captital expenditure program. So reasonably safe bet now I think, anyone has anymore insights?
hi
vivek here
can anyone comment how the co's loan has been deployed project wise so that we may see the true picture.
i don t see utilisation of funds in their balance sheet so difficult to say conclusively. I understand the three main areas are
1.Ennore Terminal to be commissioned in 2010
2.Acquistion of rakes
3. And ov course Sical Torino !!!!
The big thing to note now is
Market Leadership of Sical
Removal of Muthiah family and nomination of PE representative
and the recently concluded management contract for the Nissan Yard- which is a low value high yield project as land is already in possession of Sical.
With the improvment in the Baltic index Sical should be able to manage its nearly 2:1 D/E - which remains the biggest concern. The Nissan deal will really help in that. Incidentally Ganesh Shannbag has recommended it on CNBC at 54 !!! so welcome all those who entered at Rs24- 34 !
For those you interested Sical is very close to tying up the BArunei port in Orissa....as Arcelor Mittal has backed off - the other two bidders are no longer that serious if this happens be sure the stock will touch 100 in less than six months...so worth accumulating even at current levels. The volumes show that...it is quite likely that Sical will rope in a PE investor for the port in leiu of a stake which will ensure a handsome return for retail investors - manish feel free to add - I write more on Sical in your blog than you do!!!
sanjay, i am happy to see that you are utilizing the full potential of the blog. I am yet to analyze the annual report (due to time constraints).
Slowly, things seems to be falling in place for Sical.
hi vivek here
just heard that sical psv has been sold for 25 million dollars...how will it affec the company...
looks good as debts wll come down...i have sold my shares and waiting for dip...
vivek
Vivek,
Indeed this is great news. I did some further research.Trust me this is the best thing that could have happened for Sical. This sale brings them 150 crores and will go a long way to clean the balance sheet. Under the new EU norms Torino would find it very difficult to operate after 2011 so it has to be positioned elsewehere and Sical has little experience in Offshore logistics beyond Indian nautical miles. With this sale Sical will post an excellent EPS for FY 2010, besides this well help them tremendously to shore up finances for the BArunei port in Orissa. This further confirms my lingering doubt that they are strong contenders for the Oriss port.
Also
If the ongoing the capex program begins delivering results, the market will award it with a full year P/E of least 14 and with an EST FY 11 consolidated EPS of 9...you can well see the result for yourself.. ..management is the key to growth and investor value and now with the
1. Muthiah family OUT of this company things can only get better as the big blocker was the Muthiah family background of never having given good investor returns
2. In fact the Sical Torino acquisition remains amongst the few last transactions done while the family was still around in some form
3. Now with IDFC nominee on the board things are completely professional
IF the economy rebounds to about 8 % Sical could be discounted at 17 in which case the stock could touch 150 on an EPS of 9..and if the GDP grows only at 7 % then assume Sical EPS at 7 and a market attributed P/E of 13 to sical in which case end June Sical should be 91...
so overall range is between 91 and 150 end Q1 FY 2010 ...both optons are healthy from current positions.
I sold 40 % of my holding to book profits at 41 and then I re-entered at 44 and 47. Yet i could only cover back 90 of my initial holding. IF you have booked profit thats smart but I would think holding on is the best. Like Manish had concluded earlier in short that the worst is over and the best is still to come
apologies a correction - Farstaad Shipping purchased sical torino for about 24.3 mn USD aprox Rs 121 crores. intial reports pegged it at 31 mn USD
manish can highlight what happens to the D/E ratio now ?
hi sanjay
thanks...i too believe in sical long term play....
now im eyeing on vimta labs..i have been buying this for some time....looks for a 3-5 times stock minimum...
viv
Vivek,
note this quarter results of Sical will have a dual impact of almost 30 % of the 75 mn USD Debt being written off and the one time charge of CIPT being out of the way....Sical still has a long way to go I feel.I still feel it makes sense to remain invested...now only time will tell....I guess
hi vivek here
well sale of sical psv is in a subsidiary.bought at 31 million sold at 25 million...loss ...so it will be reflected in consolidated p/l a/c prepared at end of fy 2010.
consolidated p/l not prepared/not much signifance in quartly results.
i cant say how this money will be used so u cant assume debts will come down
if they do,debts will come down in consolidated b/s.
all said and done,
i simple know that with a company having 500-700 cr investments in infraprojects with decent roi,and few players,it should have a market cap of 1000 cr maket cap including debt.provided all assets are income genetaring with 15 roi.
Divestment of non-core business assets is a good step. Next in line can be the dredger - sical portofino even though its generating revenue for sical. Its a debt heavy company and should divest non-core businesses. As vivek pointed out rightly, we don't know if they will utilize the proceeds for debt repayment or something else. Cash is still king for businesses even now. Wait and watch is the strategy.
vivek,
your insights are extremely sharp and I respect your analysis. Extremely well researched. I agree Sical is a high risk position and a trade off between sical and vimta is a choice...but key considerations would be that they are in diferent sectors, sical has leadership while vimta is a fledgling and sical has scale while vimta can at best be a short term bet.....but after going through vimta labs fundamentals i still feel it has some key strengths over sical....manish have u taken a cross sector view on this ?
vivek,
i did the trade off between logistics and body shopping so I bought few vimta and sold a few sical...lets see how it goes...though still not convinced if this trade off makes any sense given such diverse sector and I have never been in IT / or bodyshopping sector....like Vimta Labs etc...but ur analysis is interesting as u look only at numbers in your relative comparision? manish would you do a similar trade off ...or you think its too wild ?
by the way one more thing remember IDFC has a 14 % equity at Rs222 and no P/E investor is going to let go so easily...its still two more years before IDFC completes 5 years with Sical so I still believe sell but dont exit
Just now I have deleted one post by anonymous that didn't talk about sical. So, kindly don't put non-sical comments here.
sanjay, you have asked in one of the post about vimta vs. sical. Actually, I don't track vimta and can't comment. Also for the benefit of both you and Vivek, Sical is 4% of my portfolio and I don't get perturbed by the movement/non-movement in Sical. In any portfolio of retail investors, one must have a good enough diversification.
-manish
manish,
Sical is 52% of my portfolio. The reason is i have taken a make or break view- excessive diversification i feel reduces risk no doubt but wipes out returns. Since Sical is a large part of my portfolio i have to constantly do trade offs between sical vs rest ! Yours is the only blog on Sical as I know so I think its worth having some discussion on cross sector analysis to be able to make a larger call.
hi
vivek here
sical has got another bot order of 300 cr for new mangalore port.
how will this affect the co..
im getting feeling things are improving for it and management sure will handel the investments and loans...
i was comparing it with abg infralogistics..(almost same business model)can we discuss which is cheap etc etc...worth..
vivek,
very difficult exercise unless we have sufficient data. I think the big check point would be the Q2 results and then FY10 results. The advantage with Sical is that it has beenin business for over 25 yrs and its a market leader in south, besides with a P/E investor not much can go wrong. Most companies in which IDFC has bought equity have returned good value for shareholders, i am looking at these broader indicators but one can see that the decision to sell torino has been well thought through, only caution that the revenue share on MAngalore termianl is 37 % that is quite high so not sure how sical will profit from it-though the market seems excited !
hi manish is the blog dead ?> see no posts from you or vivek or replies to any comments either ...
dear sanjay,
the blog is very active as you can see newer postings on different stocks every now and then at my blog. Regarding comments on sical, number of posts have slowed down a lot as you rightly pointed out.
the Q2 result is pretty much same as Q1 result with an extra-ordinary loss of 22 crores on sale of offshore vessel. Even the topline growth both QoQ and YoY is pretty flat.
-manish
yes a bit below expectations and hence expect a slower recovery.My view is that we can expect some downside in the stock over the enxt few months
hi
vivek here..will go through sical results later...however if flat profit but after 22 cr loss..that means 25 cr profit...i just havent gone through results...
well im concentrating on force motors and phoenx international
yes but the stock seems stressed wonder why?
hi manish,
do you have any insights why Sical Logistics is so depressed? Seems that all the woes were over with the second quarter results - yet the share has actually pulled back significantly from its high of Rs 71.00 Any thoughts from your end?
hi
vivek here
sical thinking to buy back fccb..these will be available at discount....best thing for a co to issue fccb and later buy at discount---its better to raise fccb than direct loan,as loan has to be paid at face value.
it means sical have the money..arrange for the buyback...this gives confidence in sical now....best things will start happening ....hold on..tough have not as much shares as i used to as sold many....
Long ago I tried to figure out FCCB price at SGX, however couldn't. Sical has around $25 million cash from the sale of its offshore asset. So this can be utilized for buyback at discount.
-manish
Vivek,
Do you know how to see the FCCB price of sical at SGX. IF yes, kindly let me know.
-manish
The fact that Sical has taken away the full business of three container lines from Dubai World in chennai Container terminal is going to see a significant increase in cash flows. Also with DP Wolrd now udner cash crunch more busines is likely to come their way. Since WC is being met through internal generation they can use the asset sale proceeds for the FCCB buy back. Also the full impact of August commisioning of CIPT terminal will come through in Q3 results. I see an excellent future for sical from here on.
hi vivek here
i couldnt find fccb rates...but i asssume tey are at significant discount.....private eq players like idfc backing financial markets access for sical is no problem....
buy sical if it crosses 72 closing.....then im sure u will make huge money....looking for best opportunity in life to buy sical if it crosses 72-73 in closing....and target will be 120..then 180---then above 350....
i ollowed same for gammon india from 75 levels....
friends now its time to make money here surely...hope u all will make tonns...watch out for another co---phoenix international...cmp 23...target could be another kwality dairy in making...means sky is the limit...300-500-1000...
as group co has oil fields near cairns fields....i always talk serious and dont speculate on rumors...they all are my personal research..
al bought back fccb worth 38.5 m....now things could lok up...but im fear that whether it is exit strategy for investors...is there anything to be fearful
hi manish,
seems your blog is going slow on sical unlike the share !
:-)
Nothing much to write home on Sical as we are aware of current happenings and the latest FCCB buy.
My sincere thanks to Manish, Sanjay and Vivek. Sical is significant part of my portfolio and I am sitting on a pretty good paper profits now..
Prasanna
vivek here
sical has given good profits.same co in the league now is abg infralogistics listed on bse.
its a sure 500-600 rupee stock.selling at market cap of just 230 cr...with net block of 700 cr and already depreciation 180 cr...meaning market cap is just around the total accumulated depreciation of the co....very very cheap.
it also in port logistics plus crains-in comparision selling cheap to sanghvi movers also.
psa has 11% stake here.
if u add depreciation to profits hen its selling at 3-4 times ebitda.its very chear to infra stock...
watch this out.add on dips.
vivek
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