Mercator lines

CMP: 45.9
Recommendation: Buy

Hi, have been a bit busy lately so am writing this blog after a really long time ..... Although was not out of the market..... Traded in stocks like Venky's and Idea which have had a terrific run in the past few days.

One stock which people could have in their long term portfolio is Mercator lines. The stock is currently trading at Rs 45.9 and the stock is close to its 52 week low of Rs 42.45. The P/B of the stock is 0.98 and the PE is at an extremely high at 170.

The reserves are at a rock solid 1070 cr. Gearing ratio is at 1.29 which is good for shipping industry.

The company has 60% of the business coming from long term contracts and is eyeing some more with the Indian power industries.

F11 EPS could be any where between 12-13 hence a 5*EPS would keep the stock priced at Rs 60-65.

The Q1 results are getting announced tomorrow, however, one needs to be invested over a larger horizon.

Can turn out to be a multi bagger.



Disclaimer: All recommendations are based on my analysis and people are advised to use their discretion before investing