3X Multibagger Stocks as Premium Pick · Shreyas Shipping & Logistics · Dec16

Shreyas Shipping

Watup ValueGuyz,

Mr. Market keeping extended Sale of awesome businesses by going down bit by bit almost everyday. This makes me happy & for some it tests their psyche.

Let's honour our discipline by sticking with 1 Premium/Value Pick every month as base of robust wealth creation for valueguyz.

This premium pick has a very heavy entry cost & I had an eye on this for a while. Glad to share this beautiful business as December Premium pick.

Shreyas Shipping & Logistics

Value Pick : Summary

About Business :

Transportation is a key pillar for any economy to grow n sustain & when we talk about India with vast Highways & Train track network we should not forget the geography of India. We have such a long & beautiful coast-line not to mention a location on Globe which connects Eastern globe to western counter-part.

This geography has created another line of Monopolistic line of business with longevity which is Coastal Shipping Transportation.

Today I bring to you Shreyas Shipping & Logistics which handles almost 60% of India's Container Cargo & has a scalable business model.

Shreyas promoter understands business very well & I find them focussed towards creating wealth for shareholders.

These guys are constantly upping their game as they recently bought 3 more Vessels (Ships) at Kude ke bhaav using ships ki market ki mandi & increased their capacity.

Kaise let's check out...


SWOT Analysis :

Strengths

  • 9 Vessels with average age of 20 years.
  • Shreyas handles almost 60% of India's Container Cargo .
  • Dominance in Western Coastline (WCC and PIX-1).
  • Remuneration policy of Shreyas Shipping & Logistics are investor friendly & promoter seems to be working in favour of Shareholders.
  • Shreyas has replaced two vessels with higher capacity n added three new vessels when prices of newer vessels are at historic low levels. This shows the intention to scale & smartness of promoter & promoter group.

weaknesses

  • Efforts needed to gain business on east coastline.
  • Dry docking period of 15-30 days needed to put each vessel on rest & manage risk which gives somewhat inconsistency in business.

opportunities

  • Coastal shipping presently accounts for only 7% of overall cargo movement in India.
  • Coastal shipping is cheaper & scalable way of cargo movement which needs to be promoted & is being promoted by govt. of India as we speak.

threats

  • Sharp fluctuations inr-dollar rate is always a risk.
  • A major threat being availability of adequate bunkering facilities.
  • Inadequate bunkering infrastructure at most minor/intermediate ports acts as an hindrance to coastal shipping.


Business Verdict :

The promoter is now aggressive with expansions but Howe Robinson Container Index is flat to downward & hence cargo shipment charges are at very low level. I expect this condition to recover as Howe Robinson Container Index being cyclical in nature & we are at almost bottom of cycle.

Shreyas Shipping & Logistics is a Multibagger stock in India available undervalued. ValueGuyz this stock is a definite premium value pick to consider for your research.


Official Website

Quality Analysis
Value Matrix

What are Value Picks ?

Value picks are stocks of companies that are believed to be undervalued at NSE or BSE. It is an outcome of huge sattebaaji directed by Stock brokers in that stock making Markets overreact to good and bad news, resulting in stock price movements that do not correspond with the company's long-term business or fundamentals.

You can learn Value Pick Multibagger Stock course & start your own research in depth. After completing the Value Pick Multibagger Stock course You have to apply methods & circle of competence on your researched Value Picks.

Is Value Pick Tax Free ?

YES, Profit arising from holding Equity shares for 1 Year or more is covered under Long Term Capital Gain ( LTCG) as per Income Tax Act 1961 ( Section 54 )

Got question ?

regards,

jasmeet singh

Founder & Investor

SEBI Regd.(INH100004951)

Jasmeet Singh

About me :

Currently managing assets of 5 Crore+ & still sleep like a baby every night because Valueguyz makes life simpler.

I am passionate about 3 things in my life Financial System, Fitness & Photography

I got introduced to Financial system through Forex Trading back in 2007 during my 3rd Year of Engineering & It was too complex yet magnificent. Officially I entered Indian Stock Market in early 2008 at the very beginning of Global Financial Crisis, but what the hell did I know for me it was the last semester & time to get serious about my passion ie, Counter Strike

Legends :

RoCE : Return on Capital Employed (Effective)

PAT(Avg.) : Net Profit after tax ( Average )

CMP : Current Market Price

MoS : Margin of Safety

Market Cap. : Market Capitalization (Total)

DISCLAIMER

I am a registered Research Analyst with SEBI (INH100004951). My writings n research here at www.valueguyz.com are in accordance with SECURITIES AND EXCHANGE BOARD OF INDIA (RESEARCH ANALYSTS) REGULATIONS, 2014.