Anand Rathi has put a BUY recommendation on the stock of SEAMEC.
SEAMEC - is a MNC outfit of Technip Group of France. Its leader in operating MSVs/DSV in India, with 4 out of 6 vessels belonging to it and balance 2
are with ONGC. There are just about 30-35 MSV’s operating in the world. They are specialized vessels used for undertaking any kind of underwater engg,
maintenance and developmental works.
All the ships are fully deployed right now and charter rates are also strong, due to strong demand for such vessels. In past due to focus on
spot market and also due to some kind of accidents etc, the performance of company was quite erratic and thus valuations of stock suffered too much.
Zero debt, huge cash balances and it is also likely to generate almost Rs. 265 cr for year ending Dec.’09. With market Cap of just Rs 680 Crs,
this stock with likely [for Dec’09] NAV of Rs 350 per share and EPS of Rs 70 appears dam cheap at Rs 200/
The 52 Week High and Low for the stock is 205 / 33. Enter only if you have appetite for RISK.
