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Global Offshore Services Ltd. Stock Analysis

Small Cap
Evaluated by 325 users | BSE: 501848 | NSE: GLOBOFFS |
Shipping
Garware Offshore Services Limited was incorporated as Garware Shipping Cooperations Limited on September 20, 1976, promoted by Late Padma Bhushan B.D. Garware, founder of Garware Group of Companies.The company presently owns and operates a fleet of six anchor handling tugs cum vesssels (...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Global Offshore Services Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 8.17%7.89%7.11%10.36%5.59%4.57%6.81%1.73%-19.16%-8.72%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 18117015316612289.916098.576.364.8
Y-o-Y Gr. Rt.--6.2%-10%8.3%-26.3%-26.4%77.7%-38.4%-22.6%-15%
Adjusted EPS (Rs.) 18.9816.6413.5922.6410.979.8615.2-0.08-61.21-29.04
Y-o-Y Gr. Rt.--12.3%-18.3%66.6%-51.6%-10.1%54.2%-100.5%NANA
Book Value per Share (Rs.) 110.99123.41113.91140.3138.8153.34166.13167.75106.4377.42
Adjusted Net Profit 45.239.633.35627.124.437.6-0.2-151-71.8
Net Op. Cash Flow (Rs. Cr.) 60.24213643.55244.665.847.77.112.1
Debt to Cash Flow from Ops 8.359.523.157.896.436.686.097.8852.2432.23
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Global Offshore Services Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -10.8%-11.9%-26%-15%
Adjusted EPS -204.8%-221.5%-224.1%NA
Book Value per Share -3.9-11-22.5-27.3
Share Price -26.5% -61.8% -45.9% -12.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 18.2914.211.5917.857.866.759.51-0.05-44.65-31.59
Operating Profit Margin (%) 59.5257.8156.3766.5852.8954.6551.1940.4922.422.66
Net Profit Margin (%) 24.9223.2921.7433.7522.227.1123.52-0.21-198.47-110.79
Debt to Equity 1.91.361.530.990.970.790.980.911.412.03
Working Capital Days 222217258204311393174298370355
Cash Conversion Cycle 6980989516018899195249255
Entity Percentage Holding
Promoters 33.10%
Institutions 5.82%
Non-Institutions 61.08%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Global Offshore Serv and arrived at the following conclusion:

Past 10 year's financial track record indicates that Global Offshore Serv is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Global Offshore Serv's performance infers:

Global Offshore Serv earnings have declined by -221.5%, whereas share price has depreciated -61.8% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Global Offshore Serv share prices over the last 10 years. Here is what we found out:

Global Offshore Serv share price has depreciated -26.8% annually over the past ten years.

Garware Offshore Services Limited was incorporated as Garware Shipping Cooperations Limited on September 20, 1976, promoted by Late Padma Bhushan B.D. Garware, founder of Garware Group of Companies.

The company presently owns and operates a fleet of six anchor handling tugs cum vesssels ( AHTSV'S) and five platform supply vessells (PSV'S). The company's vessels are working in various markets including India, Europe and Far East.

The company has a wholly owned subsidiary incorporated in

Garware Offshore Services Limited was incorporated as Garware Shipping Cooperations Limited on September 20, 1976, promoted by Late Padma Bhushan B.D. Garware, founder of Garware Group of Companies.

The company presently owns and operates a fleet of six anchor handling tugs cum vesssels ( AHTSV'S) and five platform supply vessells (PSV'S). The company's vessels are working in various markets including India, Europe and Far East.

The company has a wholly owned subsidiary incorporated in Singapore, 'Garware Offshore International Shipping Pte. limited’ incorporated in 2007.

The company has placed an order for one larger PSV scheduled for delivery in the 3rd quarter of F.Y.2011. In Addition, The companys Singapure Subsidary will bareboat two assets in the 3rd Quarter of F.Y.2010.These are one work BARGE and one AHTSV.

The company’s vessels support the oil and gas exploration efforts and are presently employed with various E& P companies.

The company’s platform supply vessels are employed in India and in the North Sea. The main functions of these vessels are

  • transport of personnel to rigs from onshore bases and vice versa.
  • delivery of cargo / material to rigs
  • anchor handling operations
  • Towing of rigs from one location to another.

The company has worked with various operators E & P including: ONGC, British Gas, Transocean, Cairn Energy, Senergy, Petrofac, C N R, British Petroleum, etc.

Milestones achieved:

  • October 2005- The company has contracted for the building of a ut-755l design platform supply vessel (psv) with Havyard Leirvik as a yard in Norway. The vessel was delivered in November 2006 and is on a long term contract operating in India.
  • January- 2006 The company took delivery of a ut-755 design platform supply (psv) on December 12, 2005, in Norway. This vessel, is built in the year 2000 and commenced it's contract with bg exploration and production India limited ( british gas) for two years. The vessel is presently working in the west coast of India.
  • February 2006The company has contracted for the building of a second ut-755l design platform supply vessel (psv) with Havyard Leirvik as . The vessel was delivered in May 2007 and is on a long term contract operating in India.
  • June 2006- The company has contracted for the building of a two 755ln design platform supply vessels (psv) with Havyard Leirvik as. The vessels were delivered in June 2008 and March 2009 respectively. the vessel delivered in June 2008 is working in the north sea .the vessel delivered in march 2009, is on a long term contract operating in India.
  • July 2008- The company took delivery of a new 60 ton bollard pull anchor handling tug cum supply vessel (ahtsv) viz. “m v poorna” in July 2008 at Singapore. the vessel is fitted with dynamic position system (dp1) along with external fire fighting equipment (fifi1).the vessel is working in far east waters on a term contract.
  • October 2008- The company placed an order for one large psv scheduled for delivery in the 3 rd quarter of financial year 2011.
  • December 2008- The company took delivery of a new 60 ton bollard pull anchor handling tug cum supply vessel (ahtsv) viz. “mv meghna” in december 2008 at china. the vessel is fitted with dynamic position system (dp1) along with external fire fighting equipment (fifi1). the vessel is working in far east waters on spot contracts.
  • March 2009- The company took delivery of a new 60 ton bollard pull anchor handling tug cum supply vessel (ahtsv) viz. mv mahananda in march 2009 at singapore. the vessel is fitted with dynamic position system (dp1) along with external fire fighting equipment (fifi1). the vessel is working in asean waters on a term contract.

Recent developments

Garware Offshore Services in April 2009 has secured a firm contract for 3 years from Oil & Natural Gas Corporation (ONGC) for its newly built platform supply vessel ‘M V Makalu’. The annual revenue from this contract is expected to be in the region of Rs 350 million.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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