Mercator Lines on expansion plans

Mercator Lines jumped 2.86% to Rs 82.80 at 11:23 IST on BSE on reports the firm has lined up an investment of Rs 4,000 crore for expansion in the domestic and international markets.

The scrip had touched a high of Rs 83.90 and a low of Rs 80.90 so far during the day. The stock had hit a 52-week high of Rs 184.95 on 3 January 2008 and a 52-week low of Rs 35.35 on 10 April 2007.

India’s second largest private shipping firm by fleet size has an equity capital of Rs 23.49 crore. Face value per share is Rs 1.

At the current price of Rs 82.80, the scrip trades at a PE multiple of 20.19, based on Q3 December 2007 annualised EPS of Rs 4.10.

The net profit of Mercator Lines rose 53.4% to Rs 23.59 crore on 7.2% growth in net sales to Rs 196.11 crore in Q3 December 2007 over Q3 December 2006.

Six months ago, the company ventured into dredging business by buying three second-hand dredgers and has placed an order for one more dredger from China. The company has invested about Rs 400 crore in the purchase of these dredgers, which are deployed with Dredging Corporation of India.

The company provides marine transportation services. The group's areas of operations are tankers and lighterage. The company is a provider of sea borne transportation services, primarily involved in the transportation of crude oil in India and overseas.