Karvy Stock Broking Limited has maintained ‘Buy’ rating on Shipping Corporation Of India Limited (SCI) stock with an intraday target of Rs 245.

According to Karvy, day traders can purchase the stock between Rs 232-235 with a strict stop loss of Rs 228. The stock pricing becomes more attractive, and reach above Rs 247, if the stock market remains on positive track.

Shares of the company, on Tuesday (August 06), closed at Rs 233.80 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 381959. Current EPS and P/E ratio stood at 31.43 and 7.64 respectively. The share price has seen a 52-week high of Rs 332.00 and a low of Rs 154.00 on BSE.

The outlook for the stock is very strong, and it will really outperform the stock market today.

The stock will achieve the target price as the company has forceful expansion plans and strong operating capabilities.

On August 5, the government has granted approval to Shipping Corporation of India (SCI), for acquiring four panamax bulk carriers of approx 80,000 deadweight tons (dwt) each.

Recently, the government granted the Navratna status to SCI, thereby giving more authority to the state-owned enterprise in the fields of capital investment for its striving fleet growth plan.

For the quarter ended June 30, 2008, the company reported a substantial growth of 35.65% in its standalone net profit, which stood at Rs 2,796.00 million from Rs 2,061.20 million in the same quarter, previous year.

The company posted earnings of Rs 9.90 a share during the quarter, registering 35.62% growth over prior year period.

Net sales for the quarter rose 19.87% to Rs 10,619.10 million, while total income for the quarter rose 17.56% to Rs 11,263.50 million, when compared with the prior year period.

Shipping Corporation of India (SCI), on July 25, is looking for JVs so as to expand in other related segments.

Through the JVs, the company is looking at entering port terminal management, feeder routes, in-railway transportation of containers and inland container depots at cargo freight stations (CFS). It may go in for a 20:80 financing structure in its new ventures, where equity will be 20%.

Other stocks from the same sector that looks good for short-term as well as long-term trading includes GE Shipping, Essar Shipping, Mercator Lines and ABG Shipyard.