Through mail from Abhay.
CMP 437
P/E 5.17
Market cap 6654.37
MarketCap/Sales 2.20
Financials for last 12 months( Jan 07 to Dec 07)
Net Sales 3012.13(2186.31) Up by 37.74%
Net profit 1298.31(825.91) Up by 57.19%
EPS 84.86(54.24) Up by 56.45%
Other players in this segment with their net sales for FY07 (i didn't calculate last 12 months sales for all) & their P/E
Company NetSales NetProfit MarketCap current P/E
ABG Shipyard 704.36 116.29 3717.29 25.06
Essar shipping 1024.30 134.04 10,227.98 60.45
GE Shipping 1990.6 883.31 6646 5.12
Shipping corp 3703.44 1014.58 6405.44 7.54
Among these companies only ABG shipyard is growing at faster rate but on smaller base & has P/E of 25.06 almost 5 times that of GE. Shipping corp also looks cheap but growth has been slow compared to its peers.
MarketCap/Sales ratio of 2.2 & P/E of 5.12 with potential growth of 50% plus makes it very cheap.
Also after the fall in stock price in January it has shown momentum back from 330 levels.
Wednesday, February 6, 2008
Value Buying in GE Shipping
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3 comments:
is the p/e of GE Shipping around 5 historically or its is around 5 after the market corrected recently. It the p/e is around 5 historically then we need to further investigate it else it a great time to buy. Thanks for the post.
traditionally it has traded at lower P/E. There was buyback offer in 2000 by management for the same reason. Also this was having a P/E of around around 7.5 before fall in market. What I am looking is rerating of this stock being a leader in shipping industry and growing at very good rate
Also if it gets only a p/e of say 7,expecting a conservative 30% EPS growth for FY09(Rs 110), it should be at 770 next year.
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