Chowgule Steam

This company is a part of the 90 years old Chowgule group of Goa but given the low fancy for the shipping sector and even lower fancy for this stock, it gets counted amongst penny stocks.  In terms of financial performance, the company had a loss of Rs.17 crore in Q4FY12 and in Q1FY13 it managed to turn around with a net profit at Rs.2.02 crore. YoY, it has risen over 2.5 times, despite a 35% drop in net revenue. It was the forex gain of Rs.3.51 crore which came to the rescue or else, even in this quarter, the company would have been in the red. That apart, the company also showed a profit of Rs.2.69 crore on sale of property.

The only fact worth given some consideration in the stock is the fact that as at 31st March 2012, the company was sitting on a cash balance of Rs.10.15 crore and its long term borrowings stand at Rs.18 crore. Its reserves is at Rs.124 crore. Its current market cap is at Rs.67 crore. It is putting up a port infrastructure and ship repair facilities at Jaigad and this is expected to on stream sometime in 2013.  Promoters stake is at 67.76 % and it has been giving a consistent dividend of 10 to 15% since 2005.