The Hindu Business Line : SKS Logistics in the limelight

SKS Logistics is making quiet waves in the last few weeks on news that its ship repairing and dry dock project at Alibaug on 35 acres near Mumbai would be ready for commissioning soon.

According to the management, in order to supplement the drydock/ship repairing facility at Mumbai to some extent, the company is setting up this facility on 1.27 lakh sq metre area adjoining Dharmatar creek at the mouth of river Amba in Maharashtra.

According to market sources, the conservative market price now for such land, in the vicinity of the proposed ‘Mahamumbai’ economic zone, initiated by Mukesh Ambani group, is Rs 150 crore. If the recent market valuation of Mundra Port & SEZ is any indication, SKS at Rs 51 appears distinctly undervalued on this score alone.

The stock has gained 73 per cent in the past one month and 39 per cent in the last one week. The coastal logistics service company, which has 37 vessels in its fleet and set to add two more for international charter shortly, has recently converted a dumb barge into an offshore accommodation vessel along with a helipad, crane and housing 500 personnel to carry out offshore support services.

The company has cargo fleet capability both for liquid and dry bulk. It is also setting up a joint venture with Inland Waterways Authority of India for operating vessels and barges on National Waterway No. 1 and 2 (Kolkata to Mongla in Bangladesh and Kolkata to Pandu in Assam, respectively). —

Jayanta Mallick

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