Company Update: GE Shipping Company (GESCO) - BUY - TP Rs.530 - Kotak

Shrinking global ship building order book, bottoming asset prices, stable crude prices and stable shipping freight rates bodes well for shipping cum offshore companies including GESCO. From the above, we can infer that the freight rates to improve in the shipping segment and day-rates to improve in the offshore segment which should result in improvement in EBIDTA margin and return ratios for GESCO. Also the Balance sheet (BS) health of the company is expected to improve going forward with debt prepayment. Recommend "BUY" with an increased TP of Rs 530 (from Rs420) with changing industry dynamics.

Shares of GREAT EASTERN SHIPPING CO.LTD. was last trading in BSE at Rs.414.55 as compared to the previous close of Rs. 421.55. The total number of shares traded during the day was 21554 in over 834 trades.

The stock hit an intraday high of Rs. 425 and intraday low of 412. The net turnover during the day was Rs. 9087570.

Source : Equity Bulls

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