SCI remains top gainer

SCI's stock has experienced notable gains recently. Today, the stock rose by 5.8%, marking its third consecutive day of gains and accumulating a total return of 14.75% over this period. The stock reached an intraday high of Rs.179.50, reflecting a 14% increase at its peak.

Reason for this surge:

Privatization Efforts:

• Privatization Plans: The Indian government plans to invite financial bids for the privatization of SCI in the coming months, aiming to sell the state-run company after previous delays. This move is part of a broader strategy to divest stakes in public sector enterprises.

Strategic Initiatives:

• Global Port Operations Consortium: India is considering forming a consortium for global port operations, with stakeholders including Indian Port Rail & Ropeway Corporation, Sagarmala Development Company, and SCI. This initiative aims to enhance India's presence in international port operations.

These developments reflect SCI's ongoing efforts to improve its financial performance, expand its global footprint, and adapt to the evolving maritime industry landscape

Mr.SP Tulsian’s reasoning:

SCI has fixed 31st March,23, as the Record Date for allotment of Equity Shares in the ratio of 1 share for every 1 share held, in Shipping Corporation of India Land and Assets Ltd. The countdown to stake sale has begun, while this Govt is seen capable and takes all moves in most transparent way, with speed as well. which is now seen here as well. Non-Core assets of SCI, being hived off to a new company, are seen having about 185 Residential Flats, (largely in Mumbai), coupled with 1.42 lakh sq ft of SCI House at Nariman Point, Mumbai. In addition, minimum Cash Balance of Rs. 1,000 cr is being earmarked as Non-Core Assets. SCI is also holding about 48 acres of land at Powai, Mumbai, with Book Value of Rs. 2,390 cr (estimated NPV of over Rs. 7,500 cr.) of this land, as it has potential to develop about 1 cr sq feet residential and commercial space. In aggregate, value of Non-Core Assets are estimated at over Rs. 11,000 cr, resulting in NPV of Rs. 236 per share of Non-Core assets alone, being hived off. SCI is the largest Indian shipping company, owning 59 vessels, including Bulk carriers, Crude oil tankers, Product tankers, Container vessels, LPG/ Ammonia carriers, Offshore Supply Vessels, while residual value of Core SCI may be seen quite low. Present m cap of Rs. 6,400 cr, is seen at about sub 40% of total value of SCI (core + non-core assets).  Mr.Tulsian has advised buying to prudent investors, who can respect time horizon of 6-8 months to reap full value and gains, without dancing, if have faith and respect to our given buy call.