Sadhav Shipping (NSE SME) Overview

Sadhav Shipping owns and operates marine assets to service ports, coastal logistics and other port maritime-related services. Sadhav Shipping IPO intends to raise Rs 38.18 crores. The issue is entirely a fresh issue of 40.19 lakh shares.

IPO opensFeb 23, 2024
IPO ClosesFeb 27, 2024
IPO Size (Rs.)₹38.18 Cr
IPO Size (s hares)4,018,800 shares
BreakupFresh issue only
Face Value:₹ 10
IPO Price in Rs :₹95 per share
Minimum Lot1200 shares
Listing AtNSE SME
NII Quota~50%
Retail Quota~50%
 Lead ManagerIsk Advisors
RegistrarMaashitla Securities
Market makerSunflower Broking

About Sadhav Shipping :

  • Mumbai-based Sadhav Shipping was incorporated in 1996 with an objective to own and operate marine assets to service ports, coastal logistics and other port maritime-related services.
  • Currently, the company owns and operates 24 vessels, including 19 owned vessels and 5 rented various sectors of maritime trade in India.
  • The services offered by Company are:
  • Offshore Logistics, Port Services and Oil Spill Response.
    • Sadhav Shipping Ltd., supports the exploration & production of Oil & Gas in offshore fields. Our 4 DP
    • Anchor Handling Tugs cum Supply Vessels (AHTSV’s) carry out the following duties:
    • Towing of Offshore assets
    • Supply of Drilling materials including casing pipes, cement, baryte, drill water, brine etc.
    • Participation in Search & Rescue Duties
    • Transportation of men & material to offshore locations
    • Other duties as guided by the charterer and within the scope of work.
  • They have 421 employees as on March 31, 2023.
  • Company is promoted by Mr. Kamal Kant Biswanath Choudhury, Mrs. Sadhana Choudhury Mr. Vedant Kamalkant Choudhury and Mr. Subhas Chandra Choudhury.

Financials: Sadhav Shipping

Particulars (₹ in cr.)2023 (06)2023 (12)2022 (12)2021 (12)
Total Income3,385.697,890.596,977.946,123.67
EBITDA Margin (%)28.49%21.47%17.25%18.75%
Net Profit406.97775.44300.93330.77
NPM (%)12.08%9.97%4.33%5.46%
Cash & Cash Eqv.463.38489.54325.02238.96
Share Capital295.25295.25295.25295.25
Reserves & Surplus4,206.183,799.213,208.262,910.36
Post issue Share Capital1435   
IPO price95.0   
EPS Fy235.4   
PE Fy2317.6   
EPS Fy24 (annualized)5.7   
PE Fy24  (annualized)16.7   
Market cap in cr13,632.5   
Market cap / Sales1.73   

Sadhav Shipping IPO: Salient Points

  • Sadhav Shipping Limited was the first to setup and operate India’s first Port based Tier 1 Oil Spill* Response Centre in Mumbai and are now operating in most of the Major Ports in India. This was setup in the aftermath of Mumbai oil spill which occurred in 2010 after the Panama-flagged MV MSC Chitra and MV Khalijia collided.
  • In Offshore Logistics, Sadhav Shipping supports the exploration and production of oil and gas in offshore fields of ONGC Ltd. with specialised marine assets needed for offshore operations.
  • Its service bouquet to ports includes, pilot boats, high-speed security boats, survey boats and work boats. With an increase in traffic in all major ports of the country, demand for ancillary services which the company provides has also correspondingly increased.
  • With respect to Oil Spill Response, Sadhav Shipping provides Tier-1 Oil Spill Response facility for ports; it is presently offering its services on long-term retainer contracts to Kandla, Vadinar, Mumbai, JNPT, Mangalore & Paradip Port.
  • Looking towards international oil companies and to address private ports as well.
  • They were the first to assist in import of coal to Mumbai and used barges.
  • They won a new contract 150 cr from ONGC for port services to operate one fast crew boat. This boat will be first of its type in the country with 60 passenger capacity, 25 knots speed, motion compensated gangway, gyro stabiliser and Dynamic Positioning.
  • The Object of the Issue are stated below:
Sr. No.ParticularsAmount%  Net Proceeds
1Repayment / Prepayment, in part or full of certain outstanding borrowings availed by our Company800.0022.07%
2Part  funding of  Capital Expenditure  to Purchase/ Acquire additional Boats/ vessels1,550.0042.76%
3Additional Working Capital Requirement800.0022.07%
4General Corporate Purpose475.2013.10%
Net Proceeds – Total3625.20100%
  • Their term loans are sanctioned by Bank of Baroda, Bank of India.
  • Key Performance Indicators of Company
Particulars30th  September, 2023*FY 2022-23FY 2021-22FY 2020-21
Revenue from Operations (₹ in Lakhs)3,368.917,780.846,955.336,057.02
EBITDA (₹ in Lakhs)959.741,670.341,199.711,135.57
EBITDA Margin (%)28.49%21.47%17.25%18.75%
Profit After Tax (₹ in Lakhs)406.97775.44300.93330.77
PAT Margin (%)12.08%9.97%4.33%5.46%
ROE (%)9.47%20.41%8.97%11.13%
ROCE (%)6.47%13.25%10.93%12.63%
  • Peers:
CompanyCMP (₹)Revenue(cr)Net Profit(₹ cr)NPM %PEMcap (cr)Macp/salesRONW%
Sadhav Shipping Ltd.9577.87.810.0%17.6(16.7)136.31.818.94
Seamec Limited1147437.0347.8%46.52,9166.75.97
Knowledge Marine & Engg1494202.04723.3%33.91,6138.035.58
Garware Marine13. –7.626.21.46
  • Considering the nature and size of business of the Company, the peers are not strictly comparable. This is only a broad comparison.
  • Sadhav Shipping Limited has developed strong customer base in the sector and is providing its services to leading companies which includes ONGC Ltd., Mumbai Port Authority, Pradip Port Authority, Bhabha Atomic Research Centre, Shipping Corporation of India, New Mangalore Port Authority, Deendayal Port Authority (Kandla/Vadinar), Jawaharlal Nehru Port Authority (JNPA ),BPCL, Gujarat Police, JSW Ports and more.
  • Management indicated PAT in range of 12-15%.
  • Sadhav Shipping IPO is coming at a PE ratio of 17.6x(fy23 earnings) and 16.7x ( fy24 annualized earnings)
  • I intend to apply in Sadhav Shipping IPO subject to availability of funds. I shall do this on Day 3 after assessing overall subscription figures. Services related to Oil sector in the sea and demand for ancillary services in ports are likely to witness good demand.
  • GMP as reported on social media was initially NIL but now is being reported at Rs. 14.
  • Isk Advisors are the lead book running manager with few issues handled but mostlly these issues have fared well on the bourses.They have managed SME IPOs like Magson Retail And Distribution Limited,Sealmatic India Limited, Technopack Polymers Limited, Maruti Interior Products Limited IPO, Advait Infratech Limited.
  • SME IPO are much more risky and volatile than mainboard IPOs.
  • Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

Leave a Reply