Markets
BSE See NSE See 39,434.94
311.98 (0.8%)
collapse Related Readings collapse

Your Stock Queries

| 6/28/2012 9:00 PM Thursday

DSIJ equity research experts add value to subscriber's stock portfolio by giving unbiased advice. Ask about your portfolio problem and get your stock queries answered.

VARUN SHIPPING COMPANY

Q: I have purchased 1500 shares of Varun Shipping at Rs 18 per share. Kindly advise me about the prospects of the company.

- Bhaskar Joshi , Via Email

A: Varun Shipping, BSE/NSE Code 500465/VARUNSHIP, with a face value of Rs 10, is currently trading at Rs 15, which is at a 16 per cent discount to your acquisition cost. Its 52-week high/low stand at Rs 26 and Rs 15 respectively.

Varun Shipping owns more than 20 vessels and operates in the hydrocarbons sector. It offers energy transportation as well as offshore exploration and production support services. The company deploys LPG carriers with some large charterers on a mix of time charters and spot charters. It also participates in the seaborne transportation of liquid cargo globally, and offers anchor handling, towing and supply vessels to offshore oil and gas companies for the exploration, production and development of oil and natural gas.

On the financial front, the company ended FY12 on a dismal note. Its topline stood at Rs 364.51 crore as against Rs 836.85 crore, marking de-growth of 56 per cent on a YoY basis. The bottomline witnessed de-growth of 37.76 per cent, and stood at Rs 9.18 crore as against Rs 14.75 crore for FY11. The company’s bottomline has been in a consistent decline over the past five fiscals, which is not encouraging at all. On the valuations front, it trades at a P/E of 24.76x and the EV/EBITDA stands at 7.10x, with the debt-to-equity ratio at 3.32x. It is better to exit the stock at this juncture even if you have to book losses.

KCP

Q: I am holding 1500 shares of KCP bought at Rs 33 per share. Kindly guide me on whether I should hold the stock or sell it off.

- J. Prabhakar, Via Email

A: KCP, BSE/NSE Code 590066/KCP, with a face value of Rs 1, is currently trading at Rs 30.50, which is at a 7.57 per cent discount to your acquisition cost. Its 52-week high/low stand at Rs 37 and Rs 22 respectively.

KCP engages in the cement, heavy engineering, sugar and biotechnology businesses, primarily in India and South-East Asia. The company manufactures and sells Portland cement. It also manufactures a range of machinery for companies in various industries including sugar, cement, steel, alumina, fertilisers, chemicals and petrochemicals, as also for power plants. In addition, the company produces a range of natural colouring products comprising paprika, curcumin and annatto for the food, cosmetics and pharmaceuticals industries. It also produces refined sugar and white sugar.

On the financial front, its topline witnessed a growth of 51.55 per cent for FY12 on a YoY basis, and stood at Rs 1016 crore as against Rs 670 crore for FY11. The bottomline witnessed a growth of 35 per cent, and stood at Rs 106 crore as against Rs 78.65 crore for FY11. On the valuations front, the stock discounts its FY12 earnings by 3.71x and the EV/EBITDA stands at 4.08x. The company has a dividend yield of 4.27 per cent, which is also worth a mention. We suggest that you hold the stock from a longer-term perspective.

 

Find More Articles on: DSIJ Magazine, Portfolio Guide, Stock Recommendations, Fundamental Picks, Product, Large Cap, Small Cap

«« First « Previous |1 2 | Last ››
news letter

More for the early bird.

Get the post-market reports and breakfast news right in your inbox. See latest »

DSIJ Mindshare

Torrent Power shines on the bourses

Vinayak Gangule / Article rating: 5.0

Torrent Power sparked in Tuesday’s trading session as it informed bourses that it has received an approval from Gujarat Electricity Regulatory Commission (GERC) for the power procurement arrangement of 278 MW between the company's UNOSUGEN Power Plant (capacity of 382.5 MW) and its Licensed Distribution Business for cities of Ahmedabad, Gandhinagar and Surat.

12345678910Last

Tiger Logistics topline to grow by 10%--buoyant over infra sector status to logistics sector

Tiger Logistics topline to grow by 10%--buoyant over infra sector status to logistics sector

Logistics sector will play a vital role in making the concept of ‘Make in India’ a success. This will be further aided by some of the recent steps taken by Government of India such as granting of infra sector status to logistics sector.

Best and worst Performing Sector Funds of Year 2017

Best and worst Performing Sector Funds of Year 2017

As the year-end has approached most of you are eager to know the mutual fund movers and shakers of the year 2017. Read on to find the performance of various sector dedicated funds.

Markets may start positive, but volatility likely due to F&O expiry

Markets may start positive, but volatility likely due to F&O expiry

The start of the F&O expiry day is likely to be in the green, but volatility may creep in with the progress of the session. The SGX Nifty suggests that the Nifty could open at 10,525 with gains of 32 points at the opening bell. 

Pidilite announces buyback of Rs 500 crore

Pidilite announces buyback of Rs 500 crore

The buyback offer comprises purchase of up to 50,00,000 equity shares. The buyback offer size comprises 0.975 per cent of the total paid-up equity capital of the company.

Bank Nifty drags markets to close in the red

Bank Nifty drags markets to close in the red

The late session fall in Bank Nifty changed the direction of the market, leading to a marginal fall in the benchmark indices. Bank Nifty yet again resisted at its multiple point downward sloping trendline level at 25733.

Six major underperforming MF schemes having higher expense ratios

Six major underperforming MF schemes having higher expense ratios

Mutual funds with a large size of assets under management (AUMs) are supposed to have lower expense ratios. However, there are schemes with large AUMs but having higher expense ratios and generating lower returns. 

Nifty Pharma supports market; Sun Pharma at bullish reversal

Nifty Pharma supports market; Sun Pharma at bullish reversal

Nifty Pharma index has come in as the healer in an otherwise sluggish market. Index has given a consolidation breakout at the 9420 level today and if the it sustains 9420, followed by 9628 on the upside, it has a long way to go.

Ten stocks close to their 52-week low

Ten stocks close to their 52-week low

Following stocks are close to their 52-week low as at 12.35 p.m. on December 27.

Ten stocks close to their 52-week high

Ten stocks close to their 52-week high

The markets on December 27 opened gap down. BSE Sensex is trading at 34,068.15, up by 57.54 points and the Nifty is trading at 10,539.45, up by 7.95 points.

Five stocks with selling interest

Five stocks with selling interest

Overall volumes in futures & options currently stand at 62.75 lakh contracts with a turnover of Rs. 5,19,204.72 crore.