In this edi­tion, we have re­viewed Dredg­ing Cor­po­ra­tion of In­dia and Sun Phar­ma­ceu­ti­cal In­dus­tries. We sug­gest our reader-in­vestors to BOOK PROFIT in Dredg­ing Cor­po­ra­tion of In­dia and EXIT in Sun Phar­ma­ceu­ti­cal In­dus­tries

Dalal Street Investment Journal - - REVIEWS -

We had rec­om­mended Dredg­ing Cor­po­ra­tion of In­dia in vol­ume 32, is­sue no. 17 dated July 24 - Au­gust 6, 2017, un­der the ‘Choice Scrip’ sec­tion when the scrip was trad­ing at

₹609. Our rec­om­men­da­tion was based on the prospects of es­tab­lish­ment of new ports and de­vel­op­ment of ex­ist­ing ports, in­creas­ing de­mand from In­dian Navy and gov­ern­ment pro­grammes pro­mot­ing coastal ac­tiv­i­ties, such as the Sa­gar­mala pro­gramme.

Dredg­ing Cor­po­ra­tion of In­dia is en­gaged in the busi­ness of main­te­nance dredg­ing, cap­i­tal dredg­ing, beach nour­ish­ment, land recla­ma­tion, shal­low wa­ter dredg­ing, project man­age­ment con­sul­tancy and marine con­struc­tion. The com­pany owns about three cut­ter suc­tion dredgers and 10 trailer suc­tion dredgers. The com­pany op­er­ates only in In­dia and its projects in­clude main­te­nance dredg­ing of Naval Chan­nel at Er­naku­lam; cap­i­tal dredg­ing to deepen the CICTPS, CB 1 and 2 berths, its ap­proaches at Ka­ma­ra­jar Port, and dredg­ing in the Vanakbara creek Da­man Diu.

On the fi­nan­cial front, Dredg­ing Cor­po­ra­tion of In­dia posted 10.81 per cent in­crease in its rev­enue to ₹157.94 crore in Q1FY18 on a yearly ba­sis. The com­pany’s PBIDT grew 26.67 per cent to ₹37.33 crore in Q1FY18 as against

₹29.47 crore in the same quar­ter of the pre­vi­ous fis­cal. How­ever, the com­pany’s net profit inched lower by 0.75 per cent to ₹3.97 crore in Q1FY18 as against ₹4 crore in Q1FY17.

On an an­nual ba­sis, the com­pany’s rev­enue de­creased by 12.01 per cent to ₹585.87 crore in FY17. The com­pany’s PBIDT fell by 9.76 per cent to ₹116.99 crore in FY17, as against ₹129.64 crore in FY16. The com­pany’s profit af­ter tax got re­duced by 82.34 per cent to ₹7.40 crore in FY17 from ₹41.91 crore in the pre­vi­ous fis­cal.

Af­ter our rec­om­men­da­tion, the share price of Dredg­ing Cor­po­ra­tion of In­dia went up by about 20.36 per cent. The com­pany has reached its op­ti­mum level at the mo­ment and the growth mo­men­tum is likely to take a back seat as the gov­ern­ment pre­pares for its stake sale in the com­pany. Hence, we rec­om­mended the in­vestors to Book Profit.

Scrip’s Move­ment

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