CMP 69.5 BSE SENSEX 16748
TECHNICALS:
One would have liked more data but analysing the available Price Charts, it is clear that this Scrip is showing a pronounced positive bias. On the downside it has strong support in the DMA 150 and DMA 200 zone which corresponds to levels of 63-65. If it were to break this zone on the downside then the next solid support is at 59 levels. On the upside, the next resistance is at 74 levels and a break above this level will take the scrip into blue-skies territory. Personally I don't think it will touch 59 any time soon!!
FUNDAMENTALS:
Without going into hair-splitting detail, the Company boasts of
-excellent pedigree;
-operates in the sun-rise area of Maritime Ports and Infrastructure;
-has access to the industrial hinterland both for bulk import cargo as well as Container Cargo;
-has doubled its handled volumes of Bulk Cargo and more than doubled handled volumes of Container Cargo in the last 3-4 years of operation;
-more importantly is slated to grow volumes in these segments at approx 17% CAGR over the next 4 to 5 years;
In addition, the Bulk Cargo imports of Coal and Fertilizer inputs are likely to grow substantially due to the presence of upcoming major Power and Fertilizer Plants in the Northwestern catchment.
Those of us who have had the opportunity of professional interactions with our Govt. owned Ports on the Western Coast know the kind of congestion, bureaucratic delays as well as procedural hassles the average import cargo is subjected to, resulting in massively high turn-around times for Shipping Companies as well. For them the professionally managed GPPL would surely be an elixir!!!.
The main negative so far as the Financials are concerned is the relatively high quantum of Debt on Books which issue is currently being addressed by the Company. The other negative, if one might call it that, is that the Stock is a bit of a PLODDER, a kind of Dravid in Test mode ie will score a century but will take its own time to do so. So, one will have to be patient and hold the Stock for the looong term!
Thus, in my opinion, the Stock can be ACCUMULATED in the 63-69 range and further dips, if any, and held in the Portfolio for the next half-decade.
One would have liked more data but analysing the available Price Charts, it is clear that this Scrip is showing a pronounced positive bias. On the downside it has strong support in the DMA 150 and DMA 200 zone which corresponds to levels of 63-65. If it were to break this zone on the downside then the next solid support is at 59 levels. On the upside, the next resistance is at 74 levels and a break above this level will take the scrip into blue-skies territory. Personally I don't think it will touch 59 any time soon!!
FUNDAMENTALS:
Without going into hair-splitting detail, the Company boasts of
-excellent pedigree;
-operates in the sun-rise area of Maritime Ports and Infrastructure;
-has access to the industrial hinterland both for bulk import cargo as well as Container Cargo;
-has doubled its handled volumes of Bulk Cargo and more than doubled handled volumes of Container Cargo in the last 3-4 years of operation;
-more importantly is slated to grow volumes in these segments at approx 17% CAGR over the next 4 to 5 years;
In addition, the Bulk Cargo imports of Coal and Fertilizer inputs are likely to grow substantially due to the presence of upcoming major Power and Fertilizer Plants in the Northwestern catchment.
Those of us who have had the opportunity of professional interactions with our Govt. owned Ports on the Western Coast know the kind of congestion, bureaucratic delays as well as procedural hassles the average import cargo is subjected to, resulting in massively high turn-around times for Shipping Companies as well. For them the professionally managed GPPL would surely be an elixir!!!.
The main negative so far as the Financials are concerned is the relatively high quantum of Debt on Books which issue is currently being addressed by the Company. The other negative, if one might call it that, is that the Stock is a bit of a PLODDER, a kind of Dravid in Test mode ie will score a century but will take its own time to do so. So, one will have to be patient and hold the Stock for the looong term!
Thus, in my opinion, the Stock can be ACCUMULATED in the 63-69 range and further dips, if any, and held in the Portfolio for the next half-decade.
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