Shipping Corporation of India rose 9.26% to Rs 72 at 13:25 IST on BSE on reports the company is planning to revive a 40-year-old joint venture with an Iranian company to beat slowdown in the shipping industry.
Meanwhile, the BSE Sensex was up 39.71 points, or 0.14%, to 28,463.19.
On BSE, so far 13.38 lakh shares were traded in the counter, compared with average daily volume of 1.27 lakh shares in the past one quarter. The stock hit a high of Rs 74.40 and a low of Rs 67.65 so far during the day. The stock hit a 52-week high of Rs 100.90 on 21 December 2015. The stock hit a 52-week low of Rs 54.50 on 29 February 2016. The stock had underperformed the market over the past 30 days till 1 September 2016, falling 5.99% compared with 2.62% rise in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 2.87% as against Sensex's 5.89% rise.
The mid-cap company has equity capital of Rs 465.80 crore. Face value per share is Rs 10.
Shipping Corporation of India (SCI) holds 49% stake of the Iranian joint venture firm, Irano Hind Shipping, while Islamic Republic of Iran Shipping Lines controls the rest. SCI and Islamic Republic of Iran Shipping Lines had in 2012 reportedly decided to dissolve the Tehran-based joint venture, after years of sanctions against Iran over its disputed nuclear program crimped trade flows. Those restrictions began easing in January 2016.
SCI's Chairman B. B. Sinha was quoted as saying that the recent easing of sanctions on Iran opened the way to resuscitating Irano Hind Shipping Company, which potentially offers access to Central Asian markets such as Kazakhstan. The other partner, Islamic Republic of Iran Shipping Lines, has got great presence in the Caspian Sea, he added.
Shipping Corporation of India's net profit dropped 72.6% to Rs 55.91 crore on 23.2% decline in net sales to Rs 825.29 crore in Q1 June 2016 over Q1 June 2015.
Shipping Corporation of India (SCI) owns and operates around one-third of the Indian tonnage, and has operating interests in practically all areas of the shipping business; servicing both national and international trades. Government of India currently holds 63.75% stake in SCI (as on 30 June 2016).
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