📌GUNAVANTH KUMAR HUF bought 99,600 shares of Sadhav Shipping ltd at avg Rs.135 😮🔥
▪️LAROIA MONA also bought 3,00,000 shares at avg Rs.135✅
▪️Sadhav shipping ltd was the first to setup and operate India's first Port based Tier 1 Oil Spill Response Facility Centre in Mumbai and are now operating in most of the Major Ports in India.🔥
➡️Clients🔥:- ONGC, Bhabha Atomic Research Centre(BARC), Mumbai Port Authority, Gujarat Police, Paradip Port Authority, Shipping Corporation of India, New Mangalore Port Authority, Deendayal Port Authority , Jawaharlal Nehru Port Authority, BPCL, JSW Ports and more.✅🚀
▪️With multi-fold investments in the offshore oil & gas sector and port sector, on a macro level, Sadhav's business is bound to grow.🚀💫
📌📌 ➡️ ➡️
▪️Incorporated in 1996, Sadhav Shipping Limited✅ owns and operates marine assets to service ports and coastal logistics, and provides other port maritime-related services.
▪️Sadhav Shipping has 3 business divisions:-
1)Offshore Logistics: Exploration and production of oil and gas in offshore fields.(50% Revenue✅)
2)Port Services: Serving Major Ports of India with specialised High Speed Security Boats, Mooring Personnel, Survey Boats etc.(32% Rev✅)
3)Oil spill response: Tier 1 oil spill response equipment for ports.(18% Rev✅)
📍According to the management, SSL is one of the few company that has specialized in oil spill response segment and it is turning a game changer.💫
▪️They are now offering the service on long term retainer contracts to Kandla, Vadinar, Mumbai, JNPT, Mangalore & Paradip Port with more than 8100m of oil containment booms.✅
📌PROMOTER :-▪️Mr.Kamal Kant Biswanath Choudhury an alumnus of T.S. Dufferin and Master Mariner. He is also an alumni of NMIMS and a Gold Medallist Fellow of Narottam Morarjee Institute of Shipping. He worked with the Directorate General of Shipping (India) and ONGC Ltd prior to founding the Sadhav Shipping Limited.🔥
▪️The company has 24 ships, of which 19 are owned and 5 are leased.💫
➢The Company is accredited with ISO 9001:2015 by RINA for management process.✅
➢The Company is also accredited with Document of Compliance(DOC) by the Directorate General of Shipping (India) for following the International Management Standards(ISM).✅
📌Presence🔥:- ▪️The Company will be shortly starting operations in Nigeria through Vessel ADITRI.✅
(photo added in last)
📌📌
▪️IPO price: Rs.95
▪️IPO size: 38.18Cr
▪️CMP:Rs.172
▪️Market cap: 246Cr
▪️P/E: 30 ✅
▪️EPS:5.67
▪️ROE: 20.41%
▪️ROCE: 14.36%
▪️RoNW: 18.94%
▪️Employees:421 (200+ officers)
▪️Assets: 131.13Cr
▪️cash flow:- positive in last 4 years
▪️Total Borrowing: 66.81Cr (Reserves and Surplus:42Cr)
▪️Share Holding Post Issue: 69.44%
📌FINANCIALS:
▪️FY24H1 Rev: 33.85 Cr🔥
▪️FY24H1 PAT: 4.07 Cr🔥
▪️FY23 revenue is 78.9 Cr as compared to 69.77 Cr(FY22), 15%✅ growth yoy.
▪️FY23 PAT is 7.75 Cr as compared to 3 Cr(FY22), 160%✅ growth yoy.
▪️30%🔥 growth in revenue in last 2 years.
▪️135%🔥 growth in PAT in last 2 years.
(PAT margins of 5.46% (FY21), 4.33% (FY22), 9.97% (FY23), 12.08% (H1-FY24)✅)
📌IPO funds:
It will utilize Rs.8 Cr for repayment of certain borrowings✅, Rs.15.50 Cr for CAPEX on purchase/acquisition of boats/vessels🔥, Rs.12.5 Cr for working capital and for general corporate purposes.
📌PEERS:
As per the offer document, the company has shown Seamec Ltd., Knowledge Marine, and Garware Marine as their listed peers. They are trading at a P/E of 47.3, 35.3, and 300.89 (as of February 16, 2024). However, they are not comparable on an apple-to-apple basis.
📌SECTOR GROWTH:
▪️ The logistics sector in India was valued at US$ 250 billion in 2021, with the market predicted to increase to an astounding US$ 380 billion by 2025, at a healthy 10%-12% CAGR.✅
▪️As per the data of Economic times infra.com- Major Ports of India collectively handled a round-braking 795 million tons of cargo, registering a 10.10% growth over the previous year. Further data shows that Indian ports have achieved the highest-ever output per day of 17,239 tons, marking it a 6% increase compared to last year.🔥
▪️The requirement of vessels in ONGC Ltd. is expected to increase by approximately 35% in the coming year 2024 / 2025.💫
▪️The Oil spill Response market in India is still very nascent and is on the cusp of high growth. The right regulatory framework is being put into place by the Governmental agencies for its growth to occur.✅
▪️The Sagarmala Programme was approved by the Union Cabinet in 2015 which aims at holistic port infrastructure development along the 7,516-km long coastline through modernisation, mechanisation and computerisation.(estimated cost of 59000 Cr)🔥
📌STRENGTH:
➢Company is in ship operation business since last 27 years.✅
➢Strong Client Base (serves primarily to AAA rated clients💫).
➢Quality backed assets to service to their client requirement.
➢Experienced Promoters and Management Team.
➢Strong Market Presence Across Multiple Sectors.🔥
➢Repeat orders from clients, due to performance and high customer engagement.
📌FUTURE PLAN:
▪️Expansion of Service Portfolio in Major Ports.✅
▪️Deployment in West African Market.🔥
▪️Establishing presence in micro sector of Wind Energy.🔥
▪️Entry into Minor Ports with customised Service Offerings.
▪️Establishing umbrella organisation for Oil Spill Response in India.
📌Disclosure: Not a buy recommendation. only for study and education purpose. Please consult your financial advisor before investing. Although the write up accurately reflects the personal view of the author, there may be manual/human errors in the writeup. Please stop investing blindly. 🙏🙏