Religare puts ‘buy’ on GE Shipping; target Rs 580
Religare Research has maintained ‘buy’ on GE Shipping for a target price of Rs 580, which represents 39 per cent appreciation from current levels.
By ET Bureau |
MUMBAI: Religare Research has maintained ���buy��� on GE Shipping for a target price of Rs 580, which represents 39 per cent appreciation from current levels.
The company���s standalone April-June 2008-09 results were largely in line with the brokerage estimates. Margins, however, came in higher than anticipated due to a reduction in ship charter expenses as a result of a 49 per cent year on year decline in in-charter days to 178.
The company sold five vessels during the quarter and placed two new build orders for Suezmax vessels, which will be delivered in the second and third quarters of 2011-12.
GESCO has committed capital expenditure for US$ 1.3 billion towards vessel acquisition for its shipping and offshore businesses. By the end of 2011-12, it is expected to add 14 ships and 19 offshore vessels.
Religare has reduced their revenue and EBITDA estimates for 2008-09 and 2009-10 to reflect the loss of operating days consequent to removal of vessels from fleet. Net profit, however, stands marginally above the brokerage estimates due to gains on the sale of ships.
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