Nirmal Bang has maintained its ‘Buy’ rating on Essar Shipping Ports & Logistics stock to achieve a target between Rs 48 within 1-5 days.

Traders can buy the stock on dips with a stop loss of Rs 42.

Shares of the company, on Monday (April 06), closed at Rs 40.30 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 4.03 and 10.45 respectively. The share price has seen a 52-week high of Rs 187.85 and a low of Rs 19.40 on BSE.

The report also said that a big move is expected if the stock maintains above 42.

Essar Shipping, on April 05, announced that it has joined hands with banks for its Rs 738 crore bulk terminal in Hazira and it will achieve financial closure for the other bulk terminal in Salaya, Gujarat, by the next two months.

Mr. V Ashok, Essar Shipping Ports & Logistics Director, said, “We have achieved financial closure of the Rs 738 crore for the bulk terminal in Hazira. We have raised funds through a consortium of Indian banks.”

The debt equity ratio of the project is 70:30.

The company has "launched the transaction" to raise funds for the Salaya bulk terminal and it is expected to be complete in the next two months, he said, adding Rs 800 crore is planned to be raised for the project.

In March 2009, Essar Oilfield Services, a division of Essar Shipping Ports and Logistics, stated that it has plans to acquire two jack-up rigs for $440 million.

The two jack-up rigs are projected to join the company’s fleet by the next two years, which presently owns 13 land rigs and 1 semi-submersible rig.

In addition to jack-up rigs, the company was also looking at securing other assets that comprise offshore drilling assets that would be in synergy with its growth plans.

The company has plans to swell outside India and is considering various chances in the onshore and offshore drilling space in several zones including the Norwegian region, Latin America, West Asia, Africa and Asia.