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Varun Shipping Company
USD @44.77 means Huge loss for Varun
Posted by :
Sriman35Tracked by: 0 Boarder
Yes. Thanks for high lighting.
(Obviously I have omitted the Oct07 dividend-15% and included Aug2008 dividend-5%)
Regards,
Sri...
In reply to:
USD @44.77 means Huge loss for Varun
Posted by : dk_bbs
Thanks for ur views; it was 50% (Rs.5) last year. 
USD @44.77 means Huge loss for Varun
Posted by : dk_bbsTracked by: 0 Boarder
Thanks for ur views; it was 50% (Rs.5) last year....
In reply to:
USD @44.77 means Huge loss for Varun
Posted by : Sriman35
Difficult to maintain. Could be in the region of Rs.2.50(against Rs.4 last year) for FY09. 25% dividend is good considering the current market price.
Regards,
Sri
USD @44.77 means Huge loss for Varun
Posted by :
suman.lata78Tracked by: 0 Boarder
i appreciate varun for its continous dividends. I wish they should not ct down their dvidend this time, already investors are tired of heavy losses. dividend is theonly solace. I am happy to have varun shipping in my portfolio even at this situation. see how much mercator line fell and vaun shiping....
In reply to:
USD @44.77 means Huge loss for Varun
Posted by :
vkk43
I too feel so. It could be 2.50 to 3/- only.
USD @44.77 means Huge loss for Varun
Posted by : vkk43Tracked by: 0 Boarder
I too feel so. It could be 2.50 to 3/- only....
In reply to:
USD @44.77 means Huge loss for Varun
Posted by : Sriman35
Difficult to maintain. Could be in the region of Rs.2.50(against Rs.4 last year) for FY09. 25% dividend is good considering the current market price.
Regards,
Sri
USD @44.77 means Huge loss for Varun
Posted by : Sriman35Tracked by: 0 Boarder
Difficult to maintain. Could be in the region of Rs.2.50(against Rs.4 last year) for FY09. 25% dividend is good considering the current market price.
Regards,
Sri...
In reply to:
USD @44.77 means Huge loss for Varun
Posted by : dk_bbs
The big question now is if the company would maintain the dividend in the current financial in line with the preceeding FY! Thanks
USD @44.77 means Huge loss for Varun
Posted by : vkk43Tracked by: 0 Boarder
Thanks that u agree with my views....
In reply to:
USD @44.77 means Huge loss for Varun
Posted by : dk_bbs
Thanks a lot for ur views, my feeling is not different either.
USD @44.77 means Huge loss for Varun
Posted by : dk_bbsTracked by: 0 Boarder
Thanks a lot for ur views, my feeling is not different either....
In reply to:
USD @44.77 means Huge loss for Varun
Posted by : vkk43
Looking to the present weakness in the market, probably not.
Sell Sell
Posted by : ramssTracked by: 0 Boarder
Most of the foreign Banks have reduced the floating intrest rates so most probably the liabilities should decrease rather than increase....
In reply to:
Sell Sell
Posted by : hardip singh
There is no cause for panic. Freight/charter rates for Gas Carriers and Anchor Handling Towing and Supply Vessels (AHTS) are very stable, which are the main source of income of Varun Shipping. Be rest assured that there is no indication of these rates falling in the near future. The long-term debt has been utilised for aquisition of ships, which would enhance the income of the shipping company. The losses on foreign currency debt are notional and not real, as on now. The provisioning made by the company as losses on account of appreciation of USD is a regular process, as per the accounting norms. The actual figures would be known on annual closing as on 31st March 2009. It is noteworthy that the company had gained a lot on foreign currency transactions during the year ended 31st March, 2007. The appreciation of USD against Indian Rupee is not sustainable and their is every indication of reversing of this trend. If the long-term debt taken by the company is based upon the floating rate of interest, then there might be slight increase in its liabilities. Otherwise, there is nothing much negative impacting the financial health of the company in the long run.
Sell Sell
Posted by : hardip singhTracked by: 0 Boarder
There is no cause for panic. Freight/charter rates for Gas Carriers and Anchor Handling Towing and Supply Vessels (AHTS) are very stable, which are the main source of income of Varun Shipping. Be rest assured that there is no indication of these rates falling in the near future. The long-term debt has been utilised for aquisition of ships, which would enhance the income of the shipping company. The losses on foreign currency debt are notional and not real, as on now. The provisioning made by the company as losses on account of appreciation of USD is a regular process, as per the accounting norms. The actual figures would be known on annual closing as on 31st March 2009. It is noteworthy that the company had gained a lot on foreign currency transactions during the year ended 31st March, 2007. The appreciation of USD against Indian Rupee is not sustainable and their is every indication of reversing of this trend. If the long-term debt taken by the company is based upon the floating rate of interest, then there might be slight increase in its liabilities. Otherwise, there is nothing much negative impacting the financial health of the company in the long run. ...
In reply to:
Sell Sell
Posted by :
Realstic Corner
The stock has not fallen so much, but with oil prices and freight rates comming down, the stock would be under immense pressure. There are question marks on Corporate Governance alss. There is huge amount of debt on books. One can exit this and daring people can go short on this. The 1 year target is 18 Rs as the company would book huge forex losses and the stock market would punish it left and right
USD @44.77 means Huge loss for Varun
Posted by : vkk43Tracked by: 0 Boarder
Looking to the present weakness in the market, probably not....
In reply to:
USD @44.77 means Huge loss for Varun
Posted by : dk_bbs
The big question now is if the company would maintain the dividend in the current financial in line with the preceeding FY! Thanks
USD @44.77 means Huge loss for Varun
Posted by : dk_bbsTracked by: 0 Boarder
The big question now is if the company would maintain the dividend in the current financial in line with the preceeding FY! Thanks...
In reply to:
USD @44.77 means Huge loss for Varun
Posted by : nevis
One attraction to this falling price is its high dividend yield and if it goes below 50 then the PE level also looks good.
Sell Sell
Posted by : Realstic CornerTracked by: 0 Boarder
The stock has not fallen so much, but with oil prices and freight rates comming down, the stock would be under immense pressure. There are question marks on Corporate Governance alss. There is huge amount of debt on books. One can exit this and daring people can go short on this. The 1 year target is 18 Rs as the company would book huge forex losses and the stock market would punish it left and right...
USD @44.77 means Huge loss for Varun
Posted by : nevisTracked by: 0 Boarder
One attraction to this falling price is its high dividend yield and if it goes below 50 then the PE level also looks good....
In reply to:
USD @44.77 means Huge loss for Varun
Posted by : Slogin
Day by day the situation is worsening for Varun Shipping due to appreciation of US dollar.
Looking to the present value of USD @ Rs.46.75 per dollar, the losses for Varun Shipping (due to its forex loans) may be much more than Rs.250 crores for Q2FY09, so its not a proper time to think buying, better wait till US dollar depreciates at least below Rs.42.
Instead of Varun Shipping, one can consider buying SCI at cmp of Rs.154, which has announced record date of 31.10.08 for BONUS in the ratio of 1:2 (exbonus date 29.10.08), for a target of 190-220 in short term with a stoploss of 140 on closing basis.
USD @44.77 means Huge loss for Varun
Posted by : hardip singhTracked by: 0 Boarder
How have you calculated the losses of over Rs.250 crores? Did you take into consideration the following facts:-
(a) There is an incredible increase in dollars in circulation,
without genuine growth in GDP of the USA. If we take into
consideration the bail-out plan for US financial institutions,
there is going to be very heavy outflow of USDs. Further, the
the revenue on account of corporate taxes in USA is likely to
be lower this fiscal due to slow-down/recession. Hence, their
is a possibility of depriciation of USD. In addition, we have
enough reserves of USDs and RBI shall not permit fall of the
Indian currency for prolonged period, so as to keep a check on
our import bill. As per the accounting norms, loans in foreign
currency from banks and financial institutions for acquisition
of ships shall be converted into Rupees as on 31st March, 2009
and the current exchange rate does not have any impact upon the
liabilities of Varun Shipping Co.
(b) Please take into consideration the loans covered under the
forward contracts.
(c) 5 in number Anchor Handling Towing and Supply Vessels owned
by the company can be fully deployed for oil exploration, as the
demand is more than the supply. Tankers/Gas Carriers hiring
rates shall continue to be higher due to demand/supply mismatch.
The income from MV Suvarna aquired in March, 2008 shall also
contribute to the health of the Balance Sheet for 2008-09.
Your attention is invited to the operating margins of SCI and Varun Shipping Co. Viz.24.50% and 61.60% respectively, before casting your preference for SCI.
...
In reply to:
USD @44.77 means Huge loss for Varun
Posted by : Slogin
Day by day the situation is worsening for Varun Shipping due to appreciation of US dollar.
Looking to the present value of USD @ Rs.46.75 per dollar, the losses for Varun Shipping (due to its forex loans) may be much more than Rs.250 crores for Q2FY09, so its not a proper time to think buying, better wait till US dollar depreciates at least below Rs.42.
Instead of Varun Shipping, one can consider buying SCI at cmp of Rs.154, which has announced record date of 31.10.08 for BONUS in the ratio of 1:2 (exbonus date 29.10.08), for a target of 190-220 in short term with a stoploss of 140 on closing basis.
USD @44.77 means Huge loss for Varun
Posted by : vkk43Tracked by: 0 Boarder
SCI is deinitely a safe bet at current level....
In reply to:
USD @44.77 means Huge loss for Varun
Posted by : Slogin
Day by day the situation is worsening for Varun Shipping due to appreciation of US dollar.
Looking to the present value of USD @ Rs.46.75 per dollar, the losses for Varun Shipping (due to its forex loans) may be much more than Rs.250 crores for Q2FY09, so its not a proper time to think buying, better wait till US dollar depreciates at least below Rs.42.
Instead of Varun Shipping, one can consider buying SCI at cmp of Rs.154, which has announced record date of 31.10.08 for BONUS in the ratio of 1:2 (exbonus date 29.10.08), for a target of 190-220 in short term with a stoploss of 140 on closing basis.
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