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(My Original Blog Post: -*http://www.onlineequitycalls.com/2008/12/hdfc-securities-positive-on-mercator-lines/)
HDFC Securities remains positive on Mercator Lines following better yield from the tanker segment, fewer ships in the spot market, stable contribution from dredgers and income from the sale of coal.
HDFC Securities' report:
MLL has shown robust increase in income and profitability for the quarter. Even though the Baltic Dry Index has corrected by 92%, the company will not be impacted much as 70% of its dry bulk fleet is on long-term charter at higher day rates contracted earlier during the buoyant period in dry bulk indices. At the CMP of Rs 26, the stock is trading at 1.8x and 2.3x its FY09E and FY10E EPS respectively. We remain positive on the company following better yield from the tanker segment, fewer ships in the spot market, stable contribution from dredgers and income from the sale of coal. |
