Accumulate Global Offshore; target of Rs 90: PLilladher

“Global Offshore declared results broadly in line with estimates. Revenues were slightly ahead of estimates at Rs621m, growing 23% YoY and 17% QoQ. As expected, full quarter revenue contribution from Kailash led to sequential increase in revenues. EBITDA margins improved ~160bps sequentially to 45.1% during the quarter. Consequently, adj PAT grew 92% QoQ and 25% YoY to Rs109m.”

“Q3 saw a sharp sequential improvement in revenues owing to full quarter contribution from PSV Kailash during the quarter as against only a month’s contribution in the last quarter. During the quarter, the company has disposed off another old asset Garware V at book value. The company’s fleet strength now stands at 10, comprising mainly of newer assets, all of which stands contracted currently. Three of the company’s assets (AHTSV Shergar, PSV Makalu and PSV Kamet) have contracts expiring in Q1FY13. For these vessels, the company is bidding in a number of upcoming tenders and remains confident of placing these assets at attractive rates.”

“The stock currently trades at a P/E of 7.5x FY12 and 5.3x FY13, while on an EV/ EBITDA basis, it trades at 7.5x FY12 and 6.1x FY13. We are valuing the company at a ~10% discount to global peers, at 6.6x FY13 EV/ EBITDA to arrive at our target price of Rs90. We maintain ‘Accumulate’ on the stock,” says Prabhudas Lilladher research report.  

Institutional holding more than 40% in Indian cos

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