80 per cent returns from its 52-week low: This shipping company has signed a new contract worth Rs 102 crore with ONGC Limited

Kiran Shroff
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80 per cent returns from its 52-week low: This shipping company has signed a new contract worth Rs 102 crore with ONGC Limited

The stock is traded on the NSE SME Exchange with a lot size of 1,200 shares and is up by 80 per cent from its 52-week low of Rs 135 per share.

Sadhav Shipping Limited announced that it has secured a new 3-year contract with ONGC Limited for the offshore supply vessel, Canara Pride (OSV 1500 DWT), effective May 15, 2024. This contract represents a significant increase in value from the previous agreement, with a total value of approximately Rs 102 Crore compared to Rs 46 Crore for the prior deployment. This renewal signifies the strong relationship and trust between Sadhav Shipping and ONGC Limited.\

Earlier, Sadhav Shipping's newly acquired high-speed vessel "Sadhav Anusha" marks a revolution in offshore crew transfer in India. The company, which was recently listed on the National Stock Exchange, began operations on May 15, 2024, transporting personnel between Mumbai Port and ONGC offshore installations. This new service, featuring business class seating, advanced navigation systems, and a stabilized gangway, is expected to provide a safer and more efficient alternative to traditional helicopter transfers for ONGC employees.

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Sadhav Shipping Limited, a Mumbai-based company incorporated in the year 1996 owns and operates more than 24 vessels in various sectors of maritime trade in India. The company was previously known as Homa Offshore & Shipping Company Private Limited.

The company has a market cap of Rs 345 crore and its working capital requirements have been reduced from 32.0 days to 20.5 days. According to its half-yearly results, the net sales increased by 50 per cent to Rs 50.56 crore and net profit increased by 25 per cent to Rs 5.08 crore in H2FY24 compared to H1FY24. In its annual results, the net sales increased by 8.3 per cent to Rs 84.25 crore and net profit increased by 18.1 per cent to Rs 9.15 crore in FY24 compared to FY22.

The stock is traded on the NSE SME Exchange with a lot size of 1,200 shares and is up by 80 per cent from its 52-week low of Rs 135 per share.

Disclaimer: The article is for informational purposes only and not investment advice. 

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