Kimi Venkataraman presented his in-depth investment thesis on The Great Eastern Shipping Company (India: 500620, GESHIP) at Asian Investing Summit 2015.
The Great Eastern Shipping Company Limited (GE Shipping) provides offshore oil and gas and shipping assets on hire, while also trading in them. Shares are available at around 1.8 to 2 times annual operating cash flow after interest payments plus cash on hand. The company’s large asset purchases to build an offshore business have just been completed. This was seeded from the gains made by the shipping business in the boom, which lasted until 2008. The offshore business is steadier than the shipping business. It now brings in 2/3rds of the cash, having grown seven-fold in cash earnings over the past five years. With all offshore assets now put to use, the firm is likely to generate significant free cash flow. Kimi Venkataraman values the company 60+% over the recent market price (30-day average of ₹ 351.7) even while applying adverse assumptions and with an adequate margin of safety.
About the instructor:
Krishnaraj (Kimi) Venkataraman is the Managing Partner of Kimi & Partners, an investment firm he founded in 2008. Kimi’s previous work experience includes Tata Steel and P&G India, as well as several business startups in India, including Marketics which was successfully sold to WNS. Kimi has been an investor for more than 20 years and, after reading Warren Buffett, has been investing in undervalued Indian stocks. Kimi lives in Bangalore, India, with his wife and two daughters.
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