Wednesday, December 17, 2008

ABG Shipyard Sails In Choppy Equity Price Of Rs 50.92 Crore - Dec 17, 2008

Meanwhile, the BSE Sensex was down 35.42 points, or 0.36%, to 9941.56.On BSE, 58,432 shares were traded in the counter. The scrip had an average daily volume of 32,914 shares in the past one quarter.The stock hit a high of Rs 112.05 and a low of Rs 104 so far during the day. The stock had a 52-week high of Rs 1030 on 31 December 2007 and a 52-week low of Rs 80.05 on 10 December 2008.

The stock had underperformed the market over the past one month till 16 December 2008, declining 6.37% as compared to the Sensex's 6.30% rise. It had also underperformed the market in the past one quarter, falling 67.98% as compared to the Sensex's fall of 26.20%.The small-cap ship building firm has an equity capital of Rs 50.92 crore. Face value per share is Rs 10.The current price of Rs 106 discounts its Q2 September 2008 annualised EPS of Rs 20.49, by a PE multiple of 5.17.

About a month ago, ABG Shipyard's Singapore-based group company Pacific First Shipping (PFS) signed a letter of intent with Norway-based seismic data acquisition company Scan Geophysical for a sale and leaseback agreement. But Scan Geophysical, on Monday, 15 December 2008, said it failed to sign a sale and leaseback deal with ABG.

Under a sale and leaseback agreement, a company sells the asset it owns, and leases it back from the buyer, typically on a long lease. The advantage is that the sale frees up capital to reduce debt while allowing it to use the same property.ABG Shipyard's net profit fell 23.5% to Rs 26.08 crore on a 32.3% rise in sales to Rs 280.21 crore in Q2 September 2008 over Q2 September 2007.

ABG Shipyard is engaged in building and repairing a variety of marine ships for commercial and government customers. It also manufacturers marine ships, including bulk carriers, deck barges, interceptor boats, anchor handling supply ships, diving support ships, tugs and offshore vessels.

No comments: