Welcome to Sugal & Damani

SUGAL SHARE4GAINSAn equity research newsletter & nbsp; ; Reg. No.: TNENG/05036

Vol. I No.02 & nbsp; (01 June 09 – 15 June 09)

PETRONET LNG Petronet LNG, a joint venture company between BPCL, IOC, GAIL and ONGC, was incorporated in 1998 for importing LNG and setting up of LNG terminals with facilities like jetty, storage, regasification etc. to supply natural gas for generation of power to both private / public sector power plants. While French national gas company Gaz de France is its strategic partner, Ras Laffan Liquefied Natural Gas Company, Qatar, has signed a sale and purchase agreement with Petronet for the supply of LNG to India.

BSE code	532522
NSE Code	PETRONET
Face Value	Rs. 10
EPS (TTM basis)	Rs. 6.91
Book Value	Rs. 26.45
Market Cap.	Rs. 4811.25 cr
Market Price	Rs. 64 (23/05/09)
P/E &nbs p;	9.28
Promoter holding	50%
Institutional holding	11.43%
52 week high / low	Rs. 76.95 / 29.65

The Company after setting up the country’s s first LNG receiving and regasification terminal at Dahej, Gujarat, is now building another terminal at Kochi, Kerala. The Dahej terminal has a nominal capacity of 10 million tones; the Kochi terminal will have a capacity of 2.5 mt. After the expansion of the Dahej terminal in January 2009, capacity increased to 10 mt from 6.510 mt. The facility is expected to run at full capacity in two-three months. The other expansions of Petronet are on schedule. The Dahej facility is to be ramped up to 12.5 mt by December 2010. The Kochi LNG terminal, with a capacity of 2.5 mt, is expected to be operational by December 2011. It will be further expanded to five mt by December 2012.

For Sample copy write to: Mahesh B Chandak, 28, Barnaby Road, Kilpauk, Chennai – 10Email: research@sugalshare.comFINANCIAL INFORMATION:(Rs in crores)

Particulars	March 05	March 06	March 07	March 08	FY09@
Total Revenue	1958.49	3854.48	5542.52	6606.69	8505.20
PBDIT	163.74	507.61	684.66	919.73	977.77
Interest	109.39	111.61	107.05	102.38	101.22
Depreciation	96.80	100.96	102.03	102.18	102.52
Tax	-14	100.11	162.33	240.52	255.60
PAT	-28.45	194.93	313.25	474.65	518.43
Dividend (%)	0	0	12.50	15.00	-
Equity	750	750	750	750	750
Earning per share	-0.38	2.60	4.18	6.33	6.91
Book Value	11.69	14.29	17.01	21.58	26.45

Note: @ - Un-audited yearly result; Petronet has also expressed interest in setting up a 500-MW power plant in Vypeen Island, adjacent to the LNG terminal in Kerala, at an estimated cost of Rs 2500 crore. The company is in talks with various LNG suppliers for both long- and short-term LNG contracts. The natural gas demand-supply situation in India means a perennial shortfall in domestic production over demand in the foreseeable future. The Stock is currently trading at a P/E ratio of 9.28 and Price to Book Value of 2.42. The Institutional holding in the Company stand at 11.43%. The continuous increase in the demand of natural gas and the huge gap between the demand and supply of natural gas in India will help the Company to perform well in the coming years. Looking from the above all aspect it is recommended that one can buy this scrip for a long term investment purpose in the price range of 60-64.

"The best assets you can have during inflation are your abilities." - Warren Buffett

“I don’t care about a possible recession; I don’t spend a minute thinking about it. The next 20 years should be good; we’re in the game forever. We focus on things that are known and important. We don’t know how to forecast, it’s meaningless to us”. – Warren Buffet

_____________________________________________________________Visit to www.sugalshare.com site for more information, daily market review and previously recommended stock report.SHIPPING CORPORATION OF INDIA Shipping Corporation of India (SCI) incorporated in the year 1961 by the amalgamation of Eastern Shipping Corporation and Western Shipping Corporation. The Corporation is an autonomous body working under the administration of Ministry of Transport and Communication, Govt. of India and also got the status of ‘Navratna’ in August 2008. SCI was started as a marginal liner shipping company with just 19 vessels and today, the company is a giant conglomerate having 83 ships of 4.6 mn DWT with substantial interests in 10 different segments of shipping trade.

BSE Code	523598
NSE Code	SCI
Face Value	Rs. 10
Book Value	Rs. 133.01
EPS (TTM basis)	Rs. 22.75
Current Market Price	Rs. 129.85
P / E	5.71
Market Cap	Rs. 5498.50 crores
Promoters Stake	80.12%
Institutional Investors	14.37%
Public holding	3.70%
52 week High / Low	Rs. 200 / 67

The company operates in break-bulk service, international container service, liquid and dry bulk service, offshore service, passenger service, in addition to manning and managing a large number of vessels on behalf of various government departments and organizations. The company owns and operates about 35% of the Indian tonnage and operates in practically all areas of shipping business servicing both national and international trades. FINANCIAL INFORMATION: (Rs. in crores)

Particulars	March 05	March 06	March 07	March 08	HY FY08@	HY FY09@
Total Revenue	3736.44	3762.32	4225.02	4094.34	2906.92	3612.83
PBDIT	1509.16	1498.13	1494.09	1269.09	915.76	1097.81
Interest	56.19	64.82	79.62	81.00	48.57	43.89
Depreciation	297.16	303.49	303.08	303.18	237.49	232.60
Tax	-272.73	72.82	95.43	SUGAL & DAMANI…powered by trust driven by commitment