Investshoppe Research

GE Shipping

Fruit Bearing

CMP: 170

Great Eastern Shipping Company Limited (GE Shipping), the Indias largest private sector shipping company.
The Company has two main businesses, shipping and offshore. The shipping business is involved in
transportation of crude oil, petroleum products, gas and dry bulk commodities. The offshore business services to
the oil companies in carrying out offshore exploration and production activities, through its wholly owned
subsidiary Greatship (India) Limited.
The company has Oil tankers, dry bulk cargo vessel. It has acquired owning oil drilling rig and an oil-drilling
barge through joint venture. GE Shipping also explored into the property business too. The offshore division of
the company commissioned 3 distinct activities, such as Operation of tugs comprising offshore supply vessels,
harbor tugs and anchor handling tugs, Oil drilling and Offshore constructions. It built executive apartment hotels,
convention service centres and multiplex plazas. It also transport liquefied petroleum gas (LPG) imported on freeon-board (FoB) basis. It entered into a joint venture agreement amongst Quatar General Petroleum Corporation
(QGPC) and U B Air Pvt. Ltd. and united Helicharters Pvt. Ltd. in the year.
Investment Summary
GE Shipping currently trading around Rs 170 and it has a track record of paying handsome dividend for past 5
years on expanded capital. It has paid out an annualized dividend of 115% and 150% in FY07 and FY08
respectively. Thus, at Rs 170, it offers a dividend yield of more than 7% which looks quite attractive and makes it
a good investment bet.
Financial Year Dividend %
Year
2009
2008
2007
2006
2005
2004

Dividend %
50
150
115
112
90
65

Latest Quarter Results

Net profit of Great Eastern Shipping Company declined by 18% to Rs 241.03 crore in the quarter ended
December 2008 as against Rs 293.57 crore during the previous corresponding quarter ended December 2007.
Sales rose 11.54% to Rs 728.77 crore in the quarter ended December 2008 as against Rs 653.32 crore during the
previous corresponding quarter ended December 2007.
Expansion & Outlook
The company has contracted to construct two Suezmax Tankers of DWT 158000 MT each for delivery in the
second and third quarter of FY 20011-12 respectively.
Great Eastern Shipping has a committed expansion plan of USD 1.24 billion during FY09-12E, which includes 4
tankers, 8 dry bulks carriers, 1 rig and 14 offshore vessels. With sufficient funds through internal accruals
(Reserves & Surplus of around Rs 4000 crores as on Oct08) we believe the company would be able to finance
huge capex plan in the next couple of years without equity dilution.

Invest Shoppe India Ltd

Fruit Bearing GE Shipping

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Guide to Investshoppes Classification of Stock Ideas

Safe Haven: These are stocks which have low downside risk combined with a potential to generate decent returns. This mainly includes the stocks of the
companies which are well established and have a proven track record.
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day to day monitoring is not essential. Once in a quarter, review is usually sufficient.
Force Multiplier: These are stocks which are potential multi baggers. This mainly includes companies which are on a growth trajectory and are emerging
blue chips.
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monitoring is not essential. However, stock performances and news flow should be reviewed at least once a month.
Fruit Bearing: These are stocks which provide a good dividend yield at the current levels. They may or may not have a great upside potential but would
certainly not have any significant downside risk
Investor Profile Investors with minimal risk appetite who wish to have regular inflow of tax free funds.
Punters Delight: These are stocks which generally provide speculative gains in a very short period of time. This mainly includes news based and buzzing
stocks.
Investor Profile Traders, Short term Speculators who wish to enjoy short term gains and are ready to take risk attached with these stocks.

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investment on it.

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Invest Shoppe India Ltd

Fruit Bearing GE Shipping