Shareyas was struggling to grow the business on its own for several quarters prior to selling the business to a JV in which it holds 67%. DP World, which holds the balance 1/3 share of the operating Co. and is in the business of managing multiple ports is in a far better position to arrange for greater traffic/ growth in the shipping business. This is evident from the numbers that have come in post the transfer of the business to the operating Co. The Sales figures represent largely its 2/3rd share of profits after deducting the operating expenses like fuel / man power etc.
That said, as the noted economist Keynes has stated, “valuations can remain compelling far longer than investors can remain solvent”!! There is no knowing when the market in its wisdom will give the company proper valuations, if at all. I feel something has got to give sooner than later…… either the numbers will not sustain or valuations will improve meaningfully.
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