Smooth sailing for Shipping Corporation after bonus issue plans

Shipping Corporation of India rose 6.77% to Rs 260.05 at 10:50 IST on BSE after the company said its board will consider a proposal for recommending the issue of bonus shares to Ministry of Shipping, Road Transport & Highways, Govternment of India.

On BSE, 1.81 lakh shares were traded in the counter. The scrip had an average daily volume of 82,216 shares in the past one quarter.

The stock hit a high of Rs 264 and a low of Rs 249.15 so far during the day. The stock had a 52-week high of Rs 332 on 3 January 2008 and the stock hit a 52-week low of Rs 154 on 22 January 2008.

The mid-cap stock had outperformed the market over the past one month till 13 May 2008, rising 15.07% compared to the Sensex's return of 5.98%. It had also outperformed the market in the past one quarter, rising 23.69% compared to Sensex's fall of 1.16%.

The company's current equity is Rs 282.30 crore. Face value per share is Rs 10.

The current market price of Rs 260.05 discounts its Q3 December 2007 annualised EPS of Rs 25.05 by a PE multiple of 10.38.

The company will consider bonus issue at its board meeting scheduled on 20 May 2008.

Shipping Corporation of India (SCI), a state-run shipping company, operates and manages a fleet of line vessels, tankers, bulk carriers, passenger vessels and off shore vessels.

The company's net profit declined 22% to Rs 176.78 crore on 11.5% decline in sales to Rs 915.27 crore in Q3 December 2007 over Q3 December 2006.