Sanghvi Movers Ltd Stock Research

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Sanghvi Movers Ltd Detail

Sanghvi Movers Ltd is in portfolio of Anil Kumar Goel. He is one of the top investors in India. The company belongs to Equipment sector.

As per the Company website it is the largest crane rental company in India, and ranked 6th largest in the world by International Cranes (June 2017 Issue). Below are list of equipment from this Company

  • Crawler mounted Cranes with Lattice boom
  • Truck mounted Cranes with telescopic boom
  • Truck mounted Cranes with Lattice boom
  • Hydraulic Multi Axle Modular trailers
  • Forklifts and pick and carry

The Company has some marquee names in Client list namely Ambuja Cement, Indian Oil Corporation, Voltas and Aditya Birla limited. It has 13 depots across country from timely deployment of Cranes at customer premises. It also has training academy to train Crane operators.

I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

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Sanghvi Movers Ltd Stock Performance

On an absolute basis stock gave stellar returns of around 80 times (if you consider current price and 2002 price). But over the years the performance have fluctuated too much for the comfort of investors.

The Company has good time from 2002 to 2008. After that it was hit by global crisis but returned were quickly. It again had slow decline in prices between 2011 and 2014. Looking at long term chart it is clear that stock gives quick bounce and then have slow fall.

The dividend yield at current market price is excellent with more than 3%. But the fluctuating price performance does not give comfort to investors.

Sanghvi Movers Ltd My Opinion

Sanghvi Movers Ltd is a Crane Company. It is a unique Company dealing with Crane rentals. Cranes are required for heavy lifting in all types of Industries like Cement, Oil and Gas and other similar industries and construction works.

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Demand of Cranes depend on growth in different industries and manufacturing processes. It is high entry business and Company has moat of being the largest Crane rental Company in India and one of the largest in World as well.

Cranes are integral part of heavy lifting and there are no alternatives present. However future growth of Company will largely depend on demands of Cranes. If Company could venture into other countries then it will fuel next set of growth and share price performance.

It also have to increase number of depots so that coverage area is increased. High coverage area is synonyms with revenue it can generate.

In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.


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