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Shreyas Shipping & Logistics

Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=572
Printed Date: 21/Apr/2025 at 12:07pm


Topic: Shreyas Shipping & Logistics
Posted By: nav_1996
Subject: Shreyas Shipping & Logistics
Date Posted: 10/Nov/2006 at 9:55am
I would like to know about your views on Shreyas Shipping & Logistics. Last 2 Qs have not been best but it seems to be discounted in the valuations. Also looks like worst is over.

It is also rapidly increasing its logistics business. With economy growing at this rate, logistics business is bound to do well.



Replies:
Posted By: reetesh
Date Posted: 11/Nov/2006 at 1:09pm
This is one of stock that I bought around 100 last november  but with peaking shipping rates and logistics business was slow to pick up and thats why I decided to sell this around 230, but at that level funds like Fidelity and other MF were buying, I thought my idea to sell is wrong but eventually I was right.
 
Look at SICAL Logistics even they had bad quater last one and will be bad for next 2 qtrs, but this one is pure play on logistics, from trucking to container to rail to port and warehouse and one more advantage with SICAL is they have subsidiary which operates in Offshore vessels. But if you buy this one need to have 07-08 numer in mind rather 06-07.


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When going gets tough, that’s when tough (people) gets going.

Posted By: vishal.sahay
Date Posted: 11/Nov/2006 at 1:18pm
I agree with reetesh that Sical losgistics is going to be leader in logistic and offhsor business. they have got some good order book and their client list also looks impressive. the company from the last 2-3 quaters have taken quit good steps in improving their offshore business model by acquring 2 small companies. Also the company has clearly indicated that in the near future they want to be mainly inot the logistic and offhsore business and for that purpose the company is in the process of hiving off all its non core business like the company is into final stages of demrging its palm oil busines. All this will help the company in imprviong its balance sheet by reducing its interest burden becuase at this point it stands at 2:1 (debt:equity).
 
but the company is still in restructuring stage and it will take some time so as to see the clear visibilty in terms of number as mentioned by Reetesh. So person looking to invest should have not look at short term but rather at longer period of time.


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Vishal

Posted By: vishal.sahay
Date Posted: 11/Nov/2006 at 9:16pm
Also one could look at Aban Offshor a great play on offshore business. Aban Offshore is today world 10th largest company in thies sector. And with increasing hunger for serach of oil and gas this company is poised to do well in the time to come. the company has done all the good thing by making good organic and inorganic growth.

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Vishal

Posted By: basant
Date Posted: 11/Nov/2006 at 9:37pm
Our fund Manger from Singapore likes this stock very much.

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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in

Posted By: reetesh
Date Posted: 11/Nov/2006 at 9:39pm
Who? there are many fund manager, SA or someone else?

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When going gets tough, that’s when tough (people) gets going.

Posted By: basant
Date Posted: 11/Nov/2006 at 9:43pm
SA

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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in

Posted By: reetesh
Date Posted: 11/Nov/2006 at 9:51pm
Really, as I said I used to own this stock, any idea what his view on this? What he likes about this, in my view it will take time to develope its logistics in India, for me it is more of a regional trade play... but company lost a ship recently. But, what he is he thinking (SA)?

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When going gets tough, that’s when tough (people) gets going.

Posted By: reetesh
Date Posted: 12/Nov/2006 at 1:56pm
Reminder: Any Idea what SA think about this stock, why he likes it?

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When going gets tough, that’s when tough (people) gets going.

Posted By: basant
Date Posted: 12/Nov/2006 at 2:16pm
Nothing on this specifically. Just know that he had got in early.

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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in

Posted By: nav_1996
Date Posted: 15/Nov/2006 at 2:42pm
Had a look at SICAL logistics? Any comments on quality of their management? Does not look very inspiring?

But SICAL does look very cheap on m-cap/sales valuation when compared to Shreyas.

Posted By: reetesh
Date Posted: 15/Nov/2006 at 6:24pm
There is no problem with Sical management, they are as good as Shreyas if not better, dont worry on that front,  I filter stock and 1st point is MANAGEMENT...

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When going gets tough, that’s when tough (people) gets going.

Posted By: nav_1996
Date Posted: 26/Nov/2006 at 10:53pm
Had a chance to go through their annual/Q reports. Looks like their core business of logistics is also not growing at reasonable rate. Also, ability to manage costs effectively is an issue. It appears results for Qs will remain subdued and may give us a chance to enter the stock at lower valuations.

Also, there are few -ve comments by auditors also.


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