Shipping Corporation of India (BSE code 523598) (SCI) is currently trading at Rs 213.15 (52-week high/low Rs 332/Rs 1 50).The company is a Government of SCI has 83 ships of 4.6 mn dead weight tonnage (DWT) with substantial interest in 10 different segments of the shipping trade. It owns and operates about 35 per cent of Indian tonnage and operates in practically all areas of shipping business, serving both national and international trades in linear and bulk segments. On the financial front, the company posted a topline of Rs 1,126.35 crore in Q1FY09 against Rs 979.99 crore in Q1FYO8 with a growth of 14.93 per cent, while the bottomline stood at Rs 279.60 crore against Rs 206.12 crore during the same period with a growth of 35.64 per cent. The company has increased in operating margin as well as the net profit margin due to the robust demand in logistics. Its major chunk of the revenue comes from the bulk segment (Rs 814.91 crore, with profit of Re 246.80 crore in Q1FYO9 against Rs 714.45 crore with a profit of Rs 218.82 crore in Q1FYO8) while the linear division is incurring losses, although these have been reduced to Rs 4.87 crore in Q1FYO9 against Rs 46.28 crore in Q1FYO8. The company is rapidly expanding by adding more and more vessels to its fleet. It has placed an order for four Panamaz bulk carriers of 80,655 DWT each and planning to invest over Rs 1,200 crore in its offshore activities by the end of the year. Looking at the future prospects, we suggest the investors to hold the scrip with a long-term view.
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