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8/3/2019 ICICIdirect_FreightForward_October2011
http://slidepdf.com/reader/full/icicidirectfreightforwardoctober2011 1/15
October 17, 2011
Freight Forward
ICICI Securities Ltd | Retail Equity Research
Shipping Monthly Report – October 2011
• The Baltic Dry Index (BDI) increased by 17% to 1899 in September2011 due to a 21%, 6%, and 8% rise in Capesize, Panamax and
Supramax index, respectively. Freight rates rose in September forCapesize vessels as Australian iron ore exports remained at highlevels to substitute lower exports from India to China owing to themonsoon season. We expect freight rates for Capesize andpanamax vessels to firm up with continued high level of exportsfrom Australia and the gradual up-tick in Indian iron ore exports toChina
• The Dirty Tanker Index rose by 3% to 697 while the Clean TankerIndex increased by 5% to 725 in September 2011. VLCC freightrates remained in the negative territory while day rates forSuezmax rose by 29% (on an abnormally low base) and Aframaxfreight rates crashed by 75%
• LPG freight rates displayed a weak trend in September 2011 withrates for larger vessels declining sharply. Day rates of VLGCsregistered a decline of 6% while LGC rates declined sharply by17%. MGC freight rates remained flattish during the month
• Utilisation levels for drill ships, semi-subs and jack-ups displayed amixed trend. Utilisation levels for drill ships, semi-subs and jack-up rigs was reported at 82%, 88% and 80% in September 2011 asagainst 82%, 87% and 80% in August 2011, respectively.
Outlook
Dry bulkersIn the near term, dry bulk freight rates are expected to remain positive
owing to the high level of Australian iron ore exports and higher imports
of nickel and ferrous scrap by China. Also, a gradual revival of Indian iron
ore exports to China would result in firmness in freight rates for Panamax
vessels. Over the longer term, excess supply of tonnage would keep tabs
on the up move in freight rates.
TankersCrude oil tanker freight rates are expected to remain subdued owing to
the oversupply of tonnage, which would handicap the market. Even if
some demand emerges in the near term, the tonnage available is likely to
weigh on the charter rates and keep them subdued. Some positivemomentum is likely for VLCCs while Suezmax day rates are expected to
rise from its current appalling levels.
LPG carriersLPG freight rates are expected to remain weak particularly for VLGC and
LGC while MGC freight rates are expected to remain flattish. Smaller
vessels could face downward pressure in freight rates owing to a large
proportion of vessels being added to the global fleet in 2011.
Offshore vesselsUtilisation levels for offshore vessels are expected to increase while
charter rates are expected to remain range-bound with a positive bias in
October 2011. High capex spend by major global oil exploration/drilling
companies is likely to lead to higher utilisation levels for offshore vessels.
ctorual weight
eight Index Movement - September 2011
1M 6M 1Yr.
ty Tanker Index 697 3 -25 -3
an Tanker Index 725 5 -14 7
tic Dry Index 1,899 17 24 -30
pesize Index 3,136 21 77 -11
namax Index 1,726 6 -12 -41
pramax Index 1,499 8 -2 -27
et C lass CurrentCha nge (% )
VLCC
Suezmax
Aframax
Capesize
Panamax
Supramax
Handysize
harat Chhoda
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Freight Forward
Page 2ICICI Securities Ltd | Retail Equity Research
Tanker freight rates in September 2011, displayed a mixed trend. VLCCs
remained in the negative territory while Suezmax rates increased by 29%
and Aframax rates crashed by almost 75%. The freight levels at present
for all categories are quite low compared to their historical levels as
substantial oversupply across various categories is keeping freight rates
weak.
Exhibit 1: Tankers T/C (US$ per day)
Asset class May-11 Jun-11 Jul-11 Aug-11 Sep-11
VLCC 1073 3986 -2625 -3350 -5879
Suezmax 7110 841 1359 1997 2584
Aframax 7451 5302 4900 5881 1461
Source: Bloomberg, ICICIdirect.com Research
Exhibit 2: LPG T/C (US$ per day)
M onthly D a ily M onthly Da ilyVLGC-TC 78,000 cbm 725,000 23,849 685,000 22,534
LGC-TC 57,000 cbm 660,000 21,710 550,000 18,092
MGC-TC 35,000 cbm 640,000 21,053 620,000 20,395
MGC-TC 30,000 cbm 585,000 19,243 585,000 19,243
MGC- TC 28,000 cbm 530,000 17,434 535,000 17,599
MGC- TC 24,000 cbm 510,000 16,776 510,000 16,776
Asset class
Aug -11 Sep-11
Source: Bloomberg, ICICIdirect.com Research
Exhibit 3: China’s monthly iron ore inventory
30
40
50
60
70
80
90
100
Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11
m l n t o n n e s
Source: Bloomberg, ICICIdirect.com Research
After an increase in China’s inventory level by3% in July and August 2011 to 95.3 milliontonnes (MT), the inventory level declined by
2.7% in September 2011 to 92 .8 MT
The iron ore inventory level is high. We expecta further moderation in inventory level, goingforward, which could once again exert pressureon the BDI
LPG freight rates displayed a weak trend,particularly the larger vessels with VLGC ratesdeclining by 6% MoM while LGC rates declined
by almost 17% in September 2011 compared toAugust 2011. MGC rates remained flattish
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Exhibit 4: Asia Pacific Iron Ore Index
0
100
200
300
400
500
600
Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11
I n d e x
Source: Bloomberg, ICICIdirect.com Research
Exhibit 5: China iron ore import trend analysis
0
5
10
15
20
25
30
35
Feb-09 Aug-09 Feb-10 Aug-10 Feb-11 Aug-11
m l n t o n n e s
Australia Brazil India South Africa
Source: Bloomberg, ICICIdirect.com Research
Exhibit 6: China’s monthly steel production
0
10
20
30
40
50
60
Aug-08 Feb-09 Aug-09 Feb-10 Aug-10 Feb-11 Aug-11
m l n t o n n e s
Source: Bloomberg, ICICIdirect.com Research
The Asia Pacific Iron Ore Index declined by13.5% in September 2011 to 237 level
China’s iron ore imports from Australia, BrazilIndia and South Africa increased by 2%, 8%, 8%and 54%, respectively, in August 2011
India’s exports of iron ore to China increased to4.3 MT. Australia (26.3 MT) and Brazil(12.1MT) continued to be the two largestexporters of iron ore to China in August 2011
We expect a revival in India’s export of iron oreafter the end of the monsoon season
Steel production in China decreased by 0.55MT (0.9%) in August 2011 to 58.8 MT
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Page 4ICICI Securities Ltd | Retail Equity Research
Exhibit 7: Coal Index
0
200
400
600
800
1000
1200
1400
Jan-09 Sep-09 May-10 Jan-11 Sep-11
I n d e x
BWCOAL Index BPRCOAL Index
Source: Bloomberg, ICICIdirect.com Research
Exhibit 8: Weekly dry bulk indices movement
1000
1300
1600
1900
2200
2500
2800
1-Sep-11 8-Sep-11 15-Sep-11 22-Sep-11 29-Sep-11
I n d e x
Baltic Dry Index Baltic Capesize Index Baltic Panamax Index
Source: Bloomberg, ICICIdirect.com Research
Exhibit 9: Dry bulk indices
0
3000
6000
9000
12000
15000
Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11
I n d e x
BDI BCI BPI
Source: Bloomberg, ICICIdirect.com Research
The World Coal Index and Asia Pacific CoalIndex declined by 13.4% and 9.7%,respectively, in September 2011
Dry bulk freight rates remained firm duringSeptember 2011 with significant strength in thesecond half of the month
The BDI moved up by 17% in September 2011to 1899 level
The Capesize index maintained its strongmomentum of August and moved up further by21% in September 2011 to 3136 level
The Panamax index rose by 6% in September to1726 level
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Exhibit 10: International crude oil prices
0
20
40
60
80
100
120
140
Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11
$ / b a r r e l
Source: Bloomberg, ICICIdirect.com Research
Exhibit 11: Baltic clean and dirty tanker index
0
500
1000
1500
2000
2500
Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11
I n d e x
Baltic clean tanker index Baltic dirty tanker index
Source: Bloomberg, ICICIdirect.com Research
Exhibit 12: Tanker rates trend
-15000
5000
25000
45000
65000
85000
105000
125000
Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11
U S $ / d
a y
VLCC Suezmax Aframax
Source: Bloomberg, ICICIdirect.com Research
After declining by 7% in May and 4% in June,crude oil prices increased by 4.6% to$116.8/barrel in July 2011. August 2011 sawcrude prices declining in the first half with alow of $103.5/barrel and regaining most of thelost ground in the second half and closing with
a marginal 1% decline at $115.2/barrel. InSeptember 2011, crude oil price declined by 9%to $104.3/barrel
The Clean Tanker Index increased by 5.4% to725 while the Dirty Tanker Index increased by2.7% to 697
Monthly average freight rates for VLCCsremained in the negative territory while dayrates for Suezmax increased by 29%. Aframaxfreight rates declined by 75% in September2011
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Exhibit 13: Offshore vessel utilisation levels
78 78 79 79 82 8286 86 87 87 88
79 80 80 81 80 8085
0
10
20
30
40
50
60
70
80
90
100
A p r - 1 1
M a y - 1 1
J u n - 1 1
J u l - 1 1
A u g - 1 1
S e p - 1 1
% u t i l i s a t i o n
Drillship Semisub Jack up
Source: Bloomberg, ICICIdirect.com Research
Exhibit 14: BPR Asia Pacific Shipbuilding Index
0
200
400
600
800
1000
Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11
I n d e x
Source: Bloomberg, ICICIdirect.com Research
Exhibit 15: Global order book size
Vessels mln DWT Vessels mln DWT % of DWT
Dry Bulk 23784 623 3694 255 40.9
Tanker 12253 514 1208 113 22.0LPG 1555 43 143 12 28.6
Containers 4924 186 560 42 22.6
Present Fleet Order book
Source: Bloomberg, ICICIdirect.com Research
Utilisation levels for drill ships, semi-subs andjack-ups were at 82%, 88% and 80%,respectively, in September 2011
Utilisation levels for drill ships and semi-subsincreased marginally during the month while
jack-ups saw a marginal decline in utilisation
The BPR Asia Pacific Shipbuilding Indexcontinued its downward trend and declined by23.6% in September 2011 to 402 levels after ithad earlier declined by 18.1% in August 2011
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Exhibit 16: Essar Shipping price movement
0
40
80
120
160
200
Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11
|
0
2000
4000
6000
8000
10000
I n d e x
Essar Ports BDI
Source: Bloomberg, ICICIdirect.com Research
0
25
50
75
100
125
150
175
200
Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11
|
0
500
1000
1500
2000
2500
I n d e x
Essar Ports Dirty Tanker Index
Source: Bloomberg, ICICIdirect.com Research
Exhibit 17: GE Shipping price movement
0
100
200
300
400
500
Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11
|
0
2000
4000
6000
8000
10000
I n d e x
GE Shipping BDI
Source: Bloomberg, ICICIdirect.com Research
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0
100
200
300
400
500
Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11
|
0
500
1,000
1,500
2,000
2,500
I n d e x
GE Shipping Dirty Tanker Index
Source: Bloomberg, ICICIdirect.com Research
Exhibit 18: Mercator Lines price movement
0
20
40
60
80
100
120
Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11
|
0
2000
4000
6000
8000
10000
I n d e x
Mercator Lines BDI
Source: Bloomberg, ICICIdirect.com Research
0
20
40
60
80
100
120
Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11
|
0
500
1,000
1,500
2,000
2,500
I n d e x
Mercator Lines Dirty Tanker Index
Source: Bloomberg, ICICIdirect.com Research
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Exhibit 19: SCI price movement
0
50
100
150
200
250
Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11
|
0
2000
4000
6000
8000
10000
I n d e x
SCI BDI
Source: Bloomberg, ICICIdirect.com Research
0
50
100
150
200
250
Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11
|
0
500
1,000
1,500
2,000
2,500
I n d e x
SCI Dirty Tanker Index
Source: Bloomberg, ICICIdirect.com Research
Exhibit 20: Varun Shipping price movement
0
20
40
60
80
Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11
|
0
500
1000
1500
2000
2500
I n d e x
Varun Shipping Dirty Tanker Index
Source: Bloomberg, ICICIdirect.com Research
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Page 10ICICI Securities Ltd | Retail Equity Research
Exhibit 21: Aban Offshore price movement
0
600
1200
1800
2400
3000
Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11
|
0
30
60
90
120
150
$ p e r d a y
Aban Offshore Crude Oil Prices
Source: Bloomberg, ICICIdirect.com Research
Exhibit 22: Garware Offshore price movement
0
50
100
150
200
250
Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11
|
0
30
60
90
120
150
$ p e r d a y
Global Offshore Crude Oil Prices
Source: Bloomberg, ICICIdirect.com Research
Exhibit 23: Great Offshore price movement
0
100
200
300
400
500
600
700
Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11
|
0
30
60
90
120
150
$ p e r d a y
Great Offshore Crude Oil Prices
Source: Bloomberg, ICICIdirect.com Research
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Page 11ICICI Securities Ltd | Retail Equity Research
Exhibit 24: Seamec price movement
0
50
100
150
200
250
300
Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11
|
0
30
60
90
120
150
$ p e r d a y
SEAMEC Crude Oil Prices
Source: Bloomberg, ICICIdirect.com Research
Exhibit 25: ABG Shipyard price movement
0
100
200
300
400
500
Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11
|
0
100
200
300
400
500
600
700
800
I n d e x
ABG Shipyard Shipbuilding Index
Source: Bloomberg, ICICIdirect.com Research
Exhibit 26: Bharati Shipyard price movement
0
100
200
300
400
Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11
|
0
100
200
300
400
500
600
700
800
I n d e x
Bharati Shipyard Shipbuilding Index
Source: Bloomberg, ICICIdirect.com Research
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Page 12ICICI Securities Ltd | Retail Equity Research
Global Valuations
CY10 CY11E CY12E CY10 CY11E CY12E CY10 CY11E CY12E CY10 CY11E CY12E
Dry Bulk
Diana Shipping* USA 0.8 0.8 0.8 7.5 7.9 12.8 5.6 5.7 7.0 11.2 9.5 5.9
DryShips* USA 0.5 0.5 0.5 4.8 5.1 4.6 8.1 6.8 5.5 5.6 7.5 7.9Genco Shipping* USA 0.3 0.3 0.3 2.5 10.6 - 6.2 7.7 9.2 13.2 3.5 -
Mercator Lines# India 0.3 0.3 0.3 13.7 6.8 3.5 5.2 3.7 2.8 2.1 4.1 7.5
Tanker
Frontline Ltd* Norway 2.5 1.6 1.7 13.4 - 38.4 9.1 11.2 9.8 20.2 - 1.0
Overseas Shipholding Group* USA 0.5 0.5 0.5 - - - 22.2 17.3 10.3 - - -
Teekay Corp.* USA 1.2 1.0 1.1 - - 39.0 11.7 11.3 9.7 - - 5.2
GE Shipping# India 0.7 0.6 0.6 7.6 8.3 5.7 7.8 8.9 6.2 9.0 7.8 10.3
SCI# India 0.5 0.5 0.5 6.0 17.3 15.6 8.4 11.5 7.5 7.4 2.7 3.0
LPG/LNG
Exmar* Belgium 1.3 1.2 1.2 - 54.6 17.5 12.5 11.7 10.9 5.2 7.7 9.7
Varun Shipping# India 0.4 0.6 1.1 19.3 - - 137.9 -98.2 53.6 1.8 - -
Offshore
Diamond Offshore* USA 2.9 2.2 2.1 11.9 10.4 12.5 6.3 6.0 6.6 24.5 22.0 17.1ENSCO* USA 1.4 1.0 1.1 16.2 14.4 9.2 9.1 9.3 5.5 9.0 8.2 11.8
Hercules Offshore* USA 0.7 0.8 0.9 - - - 8.7 8.8 8.5 - -
Transocean* USA 1.2 0.9 0.9 13.3 14.6 9.9 7.2 7.1 6.0 8.7 6.7 8.6
Aban Offshore# India 0.8 0.7 0.6 12.2 3.5 5.0 6.4 6.3 6.9 6.4 19.9 12.7
Global Offshore# India 0.7 0.6 0.6 7.4 8.3 10.1 8.4 7.5 7.2 9.2 7.7 6.0
Great Offshore# India 0.4 0.3 0.3 3.2 3.1 3.0 5.6 4.3 3.4 11.1 10.1 9.7
SEAMEC# India 0.8 0.8 0.8 - 22.1 22.7 - 3.0 1.8 - 3.4 3.2
Shipbuilding
Daewoo Shipbuilding* South Korea 2.0 1.9 1.6 10.0 10.5 12.0 8.3 7.8 9.4 21.5 18.5 14.2
Hyundai Heavy Industries* South Korea 3.1 1.9 1.6 11.8 8.6 9.0 11.7 8.5 8.9 30.3 24.8 19.5
Keppel Corp. Ltd* Singapore 2.8 2.8 2.5 15.3 14.3 13.0 13.3 11.5 10.3 19.6 18.3 18.1
Samsung Heavy Industries* South Korea 2.9 2.3 2.0 11.4 11.7 12.6 8.9 8.7 9.7 28.5 21.5 16.7
Sembcorp Marine* Singapore 5.3 4.0 3.5 16.7 15.9 15.9 10.6 9.7 9.5 34.4 25.9 23.8
ABG Shipyard# India 1.6 1.4 1.2 10.6 9.0 8.0 7.3 6.8 5.5 15.3 15.6 15.3
Bharati Shipyard# India 0.3 0.3 0.3 1.8 5.0 3.9 7.8 6.7 7.8 15.7 5.4 6.5
Port and Terminal
DP World* Dubai 1.5 1.3 1.2 4.5 25.4 19.6 14.2 12.9 11.5 4.5 5.3 6.2
Mundra Port*# India 9.3 6.0 4.7 46.4 25.3 17.9 35.5 17.9 13.1 20.2 25.9 29.4
Essar Ports# India 0.7 1.8 1.6 66.2 34.0 17.1 11.4 10.2 7.9 1.2 6.5 11.7
Conglomerate
A P Moller - Maersk A/S* Denmark 1.3 0.9 0.9 8.9 9.5 7.8 - 3.2 3.1 16.5 11.4 12.3
China COSCO* China 1.9 1.7 1.6 16.1 29.8 17.9 8.9 16.5 12.1 13.4 4.3 7.3
Kawasaki Kisen*# Japan 0.7 0.7 0.6 6.6 20.7 8.1 5.3 9.4 6.4 10.1 2.8 8.6
Mitsui OSK Lines*# Japan 0.8 0.7 0.7 9.2 16.0 8.7 6.3 8.6 6.7 9.0 4.7 8.2
Nippon Yusen*# Japan 0.7 0.7 0.6 7.1 13.5 8.4 5.8 7.5 6.1 10.8 5.2 8.3
*consensus
EV/EBITDA (x) ROE (%)
Company Country
P/BV (x) P/E (x)
Source: Bloomberg, ICICIdirect.com Research # With regards to Indian companies and Mitsui, three year data represents FY11, FY12 and FY13 (financial year ending in March)
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ICICIdirect.com coverage universe (Shipping)
Essar Ports Sales (| Crore) EPS (|) PE (x) EV/EBITDA (x) RoNW (%) RoCE (%)
Idirect Code ESSSHI CMP (|) 55 FY12E 1103.7 2.9 28.2 9.3 6.5 9.9
Target (|) 139 FY13E 1392.6 5.8 14.1 7.2 11.7 12.0MCap 2291 % Upside 153
G.E Shipping
Idirect Code GESHIP CMP (|) 245 FY11 2432.9 30.8 8.3 8.9 7.8 4.4
Target (|) 288 FY12E 2917.9 44.6 5.7 6.2 10.3 6.6
MCap 3724 % Upside 18 FY13E 3267.8 50.9 4.8 4.9 10.7 7.8
Mercator Lines
Idirect Code MERLIN CMP (|) 26 FY11 2828.9 1.9 21.4 5.7 2.1 5.8
Target (|) 40 FY12E 3257.7 3.8 9.7 3.5 4.5 7.3
MCap 614 % Upside 54 FY13E 3863.7 7.5 3.9 2.1 10.2 9.0
SCI
Idirect Code SCI CMP (|) 73 FY10 3543.4 12.2 8.7 10.6 7.4 2.0
Target (|) 80 FY11E 3355.9 4.2 18.8 12.5 3.6 1.1
MCap 3400 % Upside 10 FY12E 3520.7 4.7 17.9 8.5 3.7 2.7
Varun Shipping
Idirect Code VARSHI CMP (|) 19 FY11 491.4 1.0 20.3 138.6 1.8 -4.4
Target (|) 17 FY12E 466.4 -21.2 - -98.7 -65.2 -4.9
MCap 285 % Upside -11 FY13E 528.3 -14.9 - 53.9 -86.0 -2.4
Aban Offshore
Idirect Code ABALLO CMP (|) 405 FY11 3347.2 33.3 11.6 6.4 6.4 11.0
Target (|) 446 FY12E 3277.5 115.2 3.4 6.3 19.9 11.3
MCap 1762 % Upside 10 FY13E 2907.5 81.2 4.8 6.9 12.7 9.5
Global Offshore
Idirect Code GARSHI CMP (|) 83 FY11 201.6 11.2 10.4 9.2 9.2 6.2
Target (|) 122 FY12E 211.0 10.0 8.0 7.2 10.8 6.2
MCap 198 % Upside 47 FY13E 203.8 8.2 12.2 7.6 6.7 5.9Great Offshore
Idirect Code GREOFF CMP (|) 118 FY11 996.2 36.9 6.0 6.5 11.1 6.7
Target (|) 266 FY12E 940.4 37.5 5.9 5.2 10.1 8.4
MCap 438 % Upside 125 FY13E 987.9 39.5 5.6 4.3 9.7 8.6
SEAMEC
Idirect Code PEESHI CMP (|) 106 FY11 102.4 - - - - -
Target (|) - FY12E 169.0 4.6 22.1 3.0 3.4 1.5
MCap 359 % Upside - FY13E 161.3 4.5 22.7 1.8 3.2 0.7
ABG Shipyard
Idirect Code ABGSHI CMP (|) 403 FY11 2136.9 38.1 9.9 7.5 15.4 12.7
Target (|) 338 FY12E 2420.4 44.7 6.8 6.0 18.7 13.9
MCap 2051 % Upside -16 FY13E 2575.8 50.5 8.2 5.6 13.7 15.6
Bharati Shipyard
Idirect Code BHASHI CMP (|) 94 FY11 1581.1 51.1 1.7 7.7 15.7 10.3
Target (|) 92 FY12E 1248.6 18.6 4.6 6.7 5.4 10.7
MCap 274 % Upside -2 FY13E 1266.5 23.9 3.6 7.8 6.5 10.0
Source: ICICIdirect.com Research
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Page 14ICICI Securities Ltd | Retail Equity Research
Glossary
Tankers
VLCC Very large crude carrier - capacity 300000 DWT
Suezmax Capacity 120000 to 200000 DWT
Aframax Capacity 80000 and 120000 in DWT
Small Tankers Capacity 10000 to 60000 DWT
Bulkers
Capesize Capacity 80000 to 200000 DWT
Panamax Capacity 60000 to 100000 DWT
Handymax Capacity 40000 to 60000 DWT
Handysize Capacity 10000 to 40000 DWT
Offshore
Drill ship Offshore drilling vessel capable to drill in water depths up to 6000 meter. (Deepwater drilling)
Semi submersible rig Offshore drilling vessel capable to drill in water depths up to 2000 meter. (Deepwater drilling)
Jack up rigOffshore drilling vessel capable to drill in water depths up to 350 meter. (Shallow water drilling)
AHTS Anchor handling tag supply vessel used for positioning of jack up rigs.
PSV Platform support vessel used for transport of men and material to oil platform and jack up rigs.
LPG
VLGC Very large gas carrier capacity 70000+ CBM
LGC Large sized gas carrier capacity 50000 - 70000 CBM
MGC Mid sized gas carrier capacity 20000 - 50000 CBM
Miscellaneous
DWT Dead weight tonne
LDT Light displacement tonne
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RATING RATIONALE
ICICIdirect.com endeavours to provide objective opinions and recommendations. ICICIdirect.com assigns ratings to its
stocks according to their notional target price vs. current market price and then categorises them as Strong Buy, Buy,
Add, Reduce and Sell. The performance horizon is two years unless specified and the notional target price is defined
as the analysts' valuation for a stock.
Sector view:
Over weight compared to index
Equal weight compared to index
Under weight compared to index
Index here refers to BSE 200
Pankaj Pandey Head - Research [email protected]
ICICIdirect.com Research Desk,ICICI Securities Limited,1st Floor, Akruti Trade Centre,
Road No. 7, MIDC
Andheri (East)
Mumbai – 400 093
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