As the Shipping Corporation of India celebrated its golden jubilee today, our economist PM Mr MmS of Shanghai dreams fame was in Mumbai.
The govt last week, had given a full page Times of India advert with photos of the UPA high and mighty and the board patting its back and commemorating the golden jubilee of SCI.
The same paper carried an article quoting Vijay Chibber, financial adviser and additional secretary in the shipping ministry, who warned the government of the financial condition of Shipping Corp. of India Ltd (SCI) in a note titled, “Alarming financial health of SCI”. The report maintains that, according to Chibber, SCI will be in the red from this year, if the interest income and income from sale of assets is excluded.
SCI like the OIL psus is a sterling example of the callous attitude of the govt about its finances and about the health and mismanagement of its flagship PSUS and a tale of how the govt robs small shareholder.
The SCI stock is quoting at 83 and has recently made an all time low of 78 , almost 50% down from its Dec2010 fpo price of 140.
Earning Per Share (Rs)
March 2009 : 22.21
March 2010 : 8.90
Qtr Dec 2010 : 2.64
Qtr March 2011 : -0.13
This performance is a clear warning to small investors not to invest in PSU issues especially with a long term investment horizon.