I attended the AGM on Monday. As there were only 3-4 shareholders present, it was more like a one to one with the CMD, Mr. Avik Duke. The Co. should see steady growth year on year as the base is relatively small. The growth going forward will come from the acquisition of the second OPV (Offshore Petrol Vessel) which the Co. plans to lease to Cairn India. This should happen around December / Jan. The first one is under contract with British Gas.
In addition the Co. owns about 10-12 FIC’s (Fast Intercept Crafts) which have been leased to the Navy to patrol around the harbour area. The other revenue source is the maintenance of these & other FIC’s & OPV’s.
The business will always be needing funds to grow. My reading is that the mgt is looking to raise money in due course to grow, but will look to dilute only at premium valuations. All efforts seem to be in that direction. It’s 3 year vision is to have a base overseas where business opportunities are much more.
On the whole, the mgt. seemed genuine & capable of scaling up the business. The investment in the Co. to my mind has the potential to reward handsomely over the next couple of years.
Disc: Invested
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