Thursday, March 11, 2010

SICAL LOGISTICS - IMPROVING BUSINESS


Sical logistics is  one of the  largest integrated logistics company in India belongs to the SPIC group of Chennai. It started operations way back in 1955 and went for public in 1981.Company’s line of activities includes port handling, warehousing, container station ,trucking..etc.  Major part of its income came from moving of bulk commodities like iron ore and coal .Due to shrinking global trade on account of world wide recession company faced lot of problems in recent past. After such a set back company is now expanding rapidly in all its verticals. Now it is expanding its port operations in a big way in Chennai and Mangalore port..In recent past company signed a lot of agreements with different clients for expansion of business. The client list includes Mangalore port trust,Mitsui OSK lines,Hindustan Copper..etc.
                                                               In the financial front company posted an EPS of Rs.5/- for the nine month against Rs.1/- for last full year. It is also in the process of re-purchasing FCCB’s which issued earlier. Image of SPIC group is not so good, mainly because of the huge loss of its flagship company SPIC.But now the younger generation is trying to bring back the old glory of the group through various restructuring efforts.At CMP of Rs.85/- SICAL is a worth buy for medium to long term.

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