Stock Under 150 with Orders Exceeding Market Cap – ABS Marine Services is Sailing Towards Growth
Introduction:
Stock Under 150: If you’re looking for a low-priced stock with strong fundamentals and growth visibility, ABS Marine Services Ltd deserves a spot on your radar. Trading at just ₹130 per share, this shipping company is showing signs of massive potential, backed by high-value contracts worth over ₹365 crores – surpassing its current market capitalization of ₹319 crores. With its strategic deals and sectoral strength, ABS Marine is emerging as a multibagger candidate in the making.
ABS Marine – A Quick Overview
Founded in 1992 and headquartered in Chennai, ABS Marine Services Ltd is a seasoned player in India’s maritime sector. With over three decades of experience, it operates in multiple verticals: ship management, vessel ownership, marine services, and port services. The company owns five vessels and one long-term chartered ship, delivering tailored maritime solutions to various ports and offshore clients.
Its presence spans key Indian port cities like Mumbai, Kochi, and Kakinada, along with an international foothold in Singapore. ABS Marine currently maintains contracts with 10 strategic government entities, solidifying its credibility and long-term revenue visibility.
What’s Fueling the Stock Rally?
The stock has rallied 15.26% in the past month, closing at ₹130 on Friday, compared to ₹127.40 previously. It even hit the upper circuit of 2% — a bullish signal for investors.
But what’s driving this sudden interest? It’s the company’s orderbook strength, a significant indicator of future revenue.
📦 New Contracts Worth ₹365 Cr+
ABS Marine has recently bagged multiple contracts across port and offshore segments:
| Client / Segment | Contract Value | Duration | Details |
|---|---|---|---|
| Visakhapatnam Port Authority | ₹7 Cr | 5 years | Fire tender services (incl. manpower & maintenance) |
| Chennai Port Authority | ₹10.23 Cr | 5 years | High-speed patrol boat supply |
| ONGC (Offshore) | ₹102 Cr | 3 years | Charter of offshore supply vessel |
| Alphard Logistics | ₹20.60 Cr | 158 days | Charter of DP2 platform supply vessel |
| Offshore Charter | ₹27.97 Cr | 184 days | DP2 vessel charter starting March 2025 |
| Schlumberger Asia Services | ₹197 Cr | NA | Conversion & supply of well stimulation vessel |
These contracts total over ₹365 crore, which exceeds the company’s current market cap – a rare and promising financial metric for investors.
Financial Snapshot of ABS Marine Services Ltd
Here’s a look at key financial metrics that strengthen the investment case:
| Parameter | Value |
|---|---|
| Market Capitalization | ₹319 Cr |
| Current Market Price | ₹130 |
| 52-Week High / Low | ₹425 / ₹92.1 |
| Stock P/E | 13.2 |
| Book Value | ₹86.1 |
| Dividend Yield | 0.00% |
| ROCE (Return on Capital Employed) | 20.0% |
| ROE (Return on Equity) | 23.0% |
| Face Value | ₹10.0 |
The ROCE of 20% and ROE of 23% indicate efficient capital and equity utilization. A P/E of 13.2 shows the stock is still relatively undervalued compared to industry standards.
Why Investors Should Keep This Stock on Their Watchlist
- Robust Order Book: With contracts worth ₹365+ crore, ABS Marine has earnings visibility till FY26.
- Undervalued Valuation: Despite its growth outlook, it trades at ₹130 — below its book value and significantly below its 52-week high of ₹425.
- Strong Financial Ratios: Healthy ROE and ROCE indicate profitable operations.
- Government Clientele: Having contracts with 10 strategic government entities adds credibility and reduces default risk.
- Maritime Industry Tailwinds: As port operations and offshore drilling increase, demand for ABS’s services will likely grow.
Conclusion:
ABS Marine Services Ltd, a small-cap maritime company, is charting a promising course. Its current order pipeline exceeding market cap is a rare and bullish sign that indicates future earnings potential. While the stock remains under ₹150, it may not stay there for long if the company executes on its contracts efficiently. For long-term investors, this could be a rewarding journey worth boarding early.
❓Frequently Asked Questions (FAQs)
Q1: What is the current share price of ABS Marine Services Ltd?
A: As of the latest update, the stock is trading at ₹130.
Q2: Why is ABS Marine in the news lately?
A: The company secured contracts worth over ₹365 crore — more than its current market cap — boosting investor interest.
Q3: What is the market capitalization of ABS Marine?
A: The market cap stands at ₹319 crore.
Q4: What type of contracts has ABS Marine won?
A: Contracts span port services (fire tender, patrol boats) and offshore services (vessel charters with ONGC, Schlumberger, and others).
Q5: Is ABS Marine Services a profitable company?
A: Yes, with a ROE of 23% and ROCE of 20%, the company shows solid profitability metrics.
Q6: What are the risks of investing in this stock?
A: As a small-cap stock, it’s subject to higher volatility. Execution risks around contracts also remain.
Q7: Is ABS Marine a dividend-paying company?
A: No, it currently does not offer a dividend yield (0.00%).
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