Future of Varun Shipping

#1
Hello all

i wish to invest in Varun Shipping , i have gone through some basic fundamentals about the shipping sector and the company fundamentals ,

to me it seems worth and could bring returns of around 50% atleast in next 6-8 months , the only thing i was not been able to understand is why the stock is not moving beyond 40 rs mark even after having good results from past few years ? can any one suggest how much risk is there in betting on this stock [ verun shipping ] , i have just around 40,000 to 50,000 rs to invest out of which i am planning to put around 16000 to 20000 in this stock ? would like to have your opinions ? Traderji please suggest .......
since i am not a professional trader , and comparatively new to this capital world


warm regards,
ibmisp
 
#2
Hallo

(Thanks to ICICI Sector watch)

Shipping companies continue to do well aided by good freight rates. The average freight rates over the last year have improved sequentially - in the case of very large crude carriers, average freight rates have improved sequentially by about 111 per cent and for Aframax, they have risen 127 per cent.
However, over the past few months spot freight rates in the tanker segment had eased about 28 per cent from the unsustainable levels, but they are expected to remain firm due to a favourable supply-demand balance of tanker capacity globally. As such, in the near term shipping companies are expected to do well.

The Indian shipping sector is undergoing a growth phase triggered by a massive addition in capacity (through tanker acquisition). As such, even if freight rates decline from the current record high levels to realistic levels, the overall earnings growth in shipping companies is expected to remain firm, as the capacity additions shall more than setoff the impact of any decline in freight rates.

With its PE 6.12 and EPS 7.25 Trades at 1.5 Book Value It looks Good

(I am a student only and I remind the proverb Half Knowledge is dangerous)

I am waiting for expert reply tooo.

Nanjil
 

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