MARKET VIEW AND STOCK

MARKET REVIEW IN BRIEF

After a steep rise in stock prices in last two weeks the market has preferred to remain sideways in first two trading session i.e. on 24^th and 25^th Sept 2012.Higher levels attracted profit booking by few investors ahead of expiry of F&O contract for the month of Sept 2012 but it does not mean that the euphoria has ended. The new series of contracts for Oct 2012 will start now which may scale the indices for highest closing of 2011-12 in next couple of days.

THE GREAT EASTERN SHIPPING CO.LTD

This is a blue chip company under shipping sector but has been sluggish for over at least 2 yrs on account of economic slowdown globally. The three year downward cycle in shipping industry is close to end soon if the rise in Baltic index is any fair indication in last fortnight.

          G.E.Shipping which had clocked revenue earning of 3200 & 3400 Cr in 2007-08 and 2008-09 the highest in last 10 yrs with net profit of Rs 1350 and 1400 Cr respectively. The revenue earnings in 2009-10,       2010-11, and 2011-12 fell constantly at 2245 Cr and 1662 Cr and 2016 Cr.

          Correspondingly the net profit was also impacted heavily at 395 Cr, 266 Cr & 143 Cr as against mentioned prior is 2009-10.

          G.E.Shipping with highly professionally managed & due to strong fundamentals escaped itself falling into red like other shipping companies and managed to pay higher dividend @ 80% and again        @ 80 % in 2010-11 & 65% in 2011-12 which speaks the investors’ friendly management policy. At equity capital of Rs 152 Cr the reserve & surplus is as high as Rs 5000 Cr i.e. over 30 times, currently the market price of Rs 250 is highly underpriced looking to its book value, Debit equity (ratio at 0.75 & price earnings ratio being discounted for future earnings as most attractive).Hurry up to add this share in your portfolio.