The Shipping Corporation of India was established in 1961 by the amalgamation of Eastern Shipping Corporation and Western Shipping Corporation. Starting out as a marginal Liner shipping company with just 19 vessels, the SCI today has metamorphosed into a giant conglomerate of the shipping trade. SCI today has a significant presence on the global maritime map and is undoubtedly the Country's premier shipping line.

The SCI owns and operates about 40% of the Indian tonnage and operates in practically all areas of shipping business servicing both national and international trades. Keeping in view the demands of the nation's trade, the SCI over the years has diversified into a large number of areas, and is today the only Indian shipping company operating Break-Bulk service, International Container service, Passenger service, Liquid/Dry Bulk transportation service etc. The Government gave the status of "Mini Ratna" to SCI.

Products & Services-

SCI owns around 40% of Indian tonnage, SCI has around diversified fleet of 120 ships. SCI has diversified into almost all areas of shipping services and its fleet includes ten different types of vessels i. e. dry cargo vessels, cellular container vessels, bulk carriers, crude carriers, product carriers, combination carriers, LPG/ammonia carriers, phosphoric acid/chemical carriers, offshore supply vessels and passenger-cum-cargo vessels. SCI's tankers constitute the captive fleet of the Indian oil industry. It's not only the size but also the well-diversified fleet, which gives SCI an edge over other shipping majors.

SCI has diversified into almost all areas of shipping services and its fleet includes ten different types of vessels i. e. Dry Cargo vessels, Cellular Container vessels, Bulk carriers, Crude carriers, Product carriers, Combination carriers, LPG/Ammonia carriers, Phosphoric Acid/Chemical carriers, Offshore Supply Vessels and Passenger-cum-Cargo vessels.

The Bulk Carrier and Tanker Division of SCI is the largest Operating Division of SCI. It operates a diversified fleet of vessels designed to carry bulk liquids and dry bulk cargoes. SCI's fleet of Bulk Carriers caters to the movement of all types of bulk cargoes such as steel, coal, iron-ore, fertilizers, etc., primarily for India's export and import requirement.

Apart from catering to India's overseas trade, SCI's bulk carriers also assist in coastal movement of bulk cargos on India's vast coastline of around 6000 kms. SCI has also been endeavoring to be an active player in the international tramp market and presently some tonnage is operating on cross trade.

Valuations

At CMP, stock is trading at 6.7 P/E multiple of its FY2010 estimated earnings. We recommend investors to buy "Shipping Corporation of India Ltd" with medium to long term investment prospective.