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Watch and Join FREE blog for long term portfolios : jalunm.blogspot.c om
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jalunmWatch and Join FREE blog for long term portfolios : jalunm.blogspot.c om...
merctor lines
Posted by : karshin
you can enter without any fear but for long term keeping in mind the return of 20% annually...
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Karvy Stock Broking has maintained underperformer
Posted by : karshinyou can enter without any fear but for long term keeping in mind the return of 20% annually...
Karvy Stock Broking has maintained underperformer
Posted by :
idmanojplanning to enter this now. is this a good long term bet....
Karvy Stock Broking has maintained underperformer
Posted by : jaggihsWell, I am already holding the stock at 47. To get a decent average down, my next purchase must be below 40 otherwise I will continue to hold as at present. For fresh investors present time is suitable to enter....
Karvy Stock Broking has maintained underperformer
Posted by :
Investor08`Now` is the time to buy. Nobody can time the market. Why do you think you could buy at lowest price? It might be too late to wait as well......
Karvy Stock Broking has maintained underperformer
Posted by : jaggihsWell, it has been there a few months ago. Even I don`t expect it to stay below 40 for any extended period but a one off fall cannot be ruled out. If it happens, that will be a time to buy....
Mercator`s Mittal is buying Palghar shipyard.
Posted by : satcy
H K Mittal, chairman and managing director of Mercator Lines is set to buy Palghar shipyard in Maharashtra, currently owned by Mech Marine Engineers Pvt Ltd, according to sources familiar with the development.
"Mittal is doing this in his personal capacity and has already invested Rs 20 crore as an initial sum for a part-by-part buyout," added the source. Mittal was not available for a comment.
Following the acquisition, Mittal will join the league of established shipbuilders such as ABG Shipyard, Bharati Shipyard, Cochin Shipyard, Hindustan Shipyard, Mazagon Dock and Goa Shipyard.
Companies such as Larsen & Toubro, SKIL Infrastructure, Good Earth Maritime, Apeejay Shipping etc are also adding to the growing list of local private firms that have entered the shipbuilding sector.
In 2007 Mercator Lines and shipbuilder Mech Marine Engineers had formed a shipbuilding joint venture, known as Mercator Mech Marine Ltd, to build cargo-carrying ships.
"At a recent meeting between Mech Marine and Mittal, it was decided that all administrative decisions will now need Mittal`s consent. Mittal is also looking at buying land around the shipyard for expansion. The goal is to be bigger than Pipavav Shipyard," said the source.
Palghar shipyard is cited on 200 acres.
Currently six ships are being constructed at the shipyard, which was independently set up by Mech Marine at a cost of Rs300 crore.
The ships built here are believed to be cargo-carrying types. The Palghar yard is capable of building ships of up to 150 metres in length, such as small tankers that can carry petroleum products....
Mercator Lines aims to become a $5 billion company
Posted by : satcy
Source: Live Mint.
Mercator Lines, India’s second largest private sector shipping line, plans to invest and expand, riding India’s next wave of growth, the theme of the World Economic Forum’s India Economic Summit, to be held in New Delhi on 8-10 November
Mumbai: It all started with an idea floated by a co-passenger in a flight.
Harish K. Mittal, owner of India’s second largest private shipping line, does not remember the passenger’s name, but his suggestion on starting a shipping firm way back in the early 1980s stuck in his mind.
Mittal, then running a chemical factory in Muzaffarnagar in Uttar Pradesh, mentioned this idea to Atul Agarwal, who is married to his wife’s sister. Agarwal was at the time auditing some companies that included a few shipping firms.
In 1988, Agarwal mentioned that Mumbai-based Mercator Lines Ltd was on the block. Mittal, then also into the business of buying ship scrap, did not hesitate. He bought the firm for Rs1.2 crore from the Ramchandani family.
From Rs65 lakh in 1988, the firm’s revenue increased to Rs2,200 crore in the year ended 31 March. Mercator Lines today runs a fleet of 28 vessels, up from three barges in the year Mittal bought the firm.
The shipping line, riding high on the wave of India’s economic liberalization since the 1990s, listed on the Bombay Stock Exchange in 1993 and has never missed paying a a yearly dividend to shareholders, Mittal says.
The 59-year-old entrepreneur now wants to make his firm a $5 billion (around Rs23,550 crore) company, an “ambitious dream,” but not impossible for a shipping line that reported a revenue of just Rs60 crore just five years ago.
From a traditional tanker company, Mercator today has a presence in bulk shipping, tanker shipping, dredging, offshore oil exploration and coal mines.
“We have already acquired four coal mines in Indonesia and one in Mozambique. We are now looking for acquiring one more in Indonesia. This will enable us to offer a complete logistics package including coal, ship and local logistics,” says Mittal, who holds a 1973 postgraduate degree in technology from the Indian Institute of Technology, Roorkee, then known as the University of Roorkee.
A majority of new Indian power projects are eyeing imported coal, mainly from Indonesia, to run their plants.
Mittal attributes his success to his management team.
An analyst agrees. “Mercator Lines management was always aggressive to grab every opportunity that came before them, be it dredging, coal mines, offshore or dry bulk ships,” says Kapil Yadav, an analyst with domestic brokerage Dolat Capital Market Pvt. Ltd. Yadav tracks the firm’s scrip.
“The business model of Mercator Lines is to diversify to several segments to derisk, while locking in its vessels for long-term contracts to mitigate the volatility of freight rates,” he says.
Mercator Lines has acquired four dredgers and plans to add six more to its portfolio. Indian ports continuously require dredging to keep their shipping channels deep. State-run Dredging Corp. of India Ltd is unable to meet the entire requirements of the country’s ports. Some international dredging companies have set up shop in India to tap the market potential.
“We are very serious about dredging,” says Mittal. “Apart from dredging, we are also upbeat about the offshore sector.”
Mercator Lines, as part of a strategy to derisk the cyclical nature of its core shipping business, entered the offshore drilling business with the delivery of a Rs1,000 crore jack-up rig. The rig was immediately deployed on a three-year contract with state-owned Oil and Natural Gas Corp. Ltd through Great Eastern Shipping Co. Ltd.
“We are constantly looking for other areas of offshore business, exclusive offshore support vessels. This could be anything, high specification rigs or other areas,” Mittal says. “Mercator was contracted two oil blocks under the seventh round of the new exploration licensing policy,” Mittal said.
In December 2007, Mercator Lines listed its Singapore-based subsidiary on the Singapore Stock Exchange and raised over Rs500 crore.
Last year, shipping firms were hit by the global economic downturn that led to a steep decline in world trade and caused freight rates to fall. “Though there are some signs of revival, I think the next two years are going to be tough for the shipping sector,” Mittal says. “Our diversification model is going to save us during this crisis.”
“Though Mercator has done everything to de-risk by diversifying, as a shipping company it will be exposed to volatility since it is a cyclical industry,” Dolat’s Yadav says.
Mittal, however, remains optimistic. He says all the business segments of his firm are growing and he would continue to invest in these. “Nothing stops us from aiming at being a $5 billion company.” ...
Karvy Stock Broking has maintained underperformer
Posted by : Investor08No way, it can`t go below 42.....
Karvy Stock Broking has maintained underperformer
Posted by : Investor08No way, it can`t fall below 42......
Karvy Stock Broking has maintained underperformer
Posted by : jaggihsMercator may go down to mid 30s level but that will be a one off decline. It is diversifying fast and this expenditure has resulted in one time loss in Q2. Stock is stable and will head to stabilise in 62-67 range in 3 months or by end of FY10. I am holding at 47 and will buy more if it falls below 40....
Karvy Stock Broking has maintained underperformer
Posted by : jedhmI dont want to predict the price on F&O expiry. My assumption is based on enhanced earning of Mercator in the comming quarters as world recovery is insihgt. Baltic Dry Index is a leading economic indicator & it indicates future trend of the stock market. Once can think of Baltic index as when the index rises Mercretor is going to UP and vice versa. And BDI index will be soaring again !!!...
Karvy Stock Broking has maintained underperformer
Posted by : Investor08Buddy, what are you waiting for. Its time to buy this stock. It can`t get better....
Karvy Stock Broking has maintained underperformer
Posted by : Guestexport is recovering gradually month on month basis. check the government export data where negative number is slowly going down. Mercator will give good return till June10 when fleet movement will be higher side as well as coal price will go up. Target 150/-...
