Result Update: Shipping Corporation of India - BUY - TP Rs.110 - Kotak

SCI has reported moderate set of numbers for Q3FY18 supported by improvement in macroeconomic environment and winter in the West. However, we had anticipated much stronger performance in seasonally strong Q3 for shipping companies. Sales was reported at Rs 8.8 bn (-9% YoY and +9% QoQ) with contribution from all the segments of shipping. Operational performance was marginally impacted by higher bunker or fuel prices during the quarter. Higher other income and lower finance cost supported the earnings for the quarter. Consequently company reported PAT of Rs 823 mn vs. expectation of Rs 1061 mn. With stronger global GDP in CY18, we are hopeful of improvement in performance going forward. Maintain BUY with an unchanged TP of Rs 110 at 2/3rd FY20E book value.

Shares of SHIPPING CORPORATION OF INDIA LTD. was last trading in BSE at Rs.80.25 as compared to the previous close of Rs. 81.1. The total number of shares traded during the day was 99723 in over 864 trades.

The stock hit an intraday high of Rs. 82.6 and intraday low of 79.3. The net turnover during the day was Rs. 8051134.

Source : Equity Bulls

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