Drewry Maritime Equity Research

Drewry, since 1970, has been providing research and advisory services on the global Maritime and Shipping industries and has established itself as a firm with long history of credibility and expertise on various aspects of the maritime industry. Leveraging this in-depth market knowledge and understanding, we have extended our offering to deliver a unique, independent investment research service on globally listed companies operating in the maritime industry. Under the brand Drewry Maritime Equity Research and in accordance with the FCA, DMER led by Rahul Kapoor and his team, offers fundamental analysis on listed companies. DMER analysts have access to one of the most up-to-date, comprehensive and reliable sources of market insight and research data available today. By combining these market-leading resources with seasoned sector expertise and commercial awareness, we are able to offer a highly differentiated and comprehensive investment research service to prospective investors in listed maritime companies. We look at globally listed companies within the following sectors: Port Operators, Container Shipping, Container Manufacturing & Leasing, LNG Shipping, Dry Bulk Shipping and Tanker Shipping. Combine in-depth sector expertise with financial analysis focusing on over 50 stocks globally.

Regulatory Information

  • Regulatory Status: FCA Regulated

Ankush Kathuria
  • Ankush Kathuria

Westports_Result Update 3Q22

After massively underperforming the Drewry Port Equity Index in 2021, Westport’s stock price moved in tandem with the broader equity index in 2022. The stock slumped 11.2%, in line with the 12.2% decline recorded by the Drewry’s sectorial index. At the current EV/EBITDA valuation, the company trades at a premium of 18.0% when compared with Drewry Port Equity Index, but is at a 16.1% discount from its five-year historical average. Our fair value estimate of MYR 4.08 provides an upside of 8.9% com...

Nikesh Shukla
  • Nikesh Shukla

Star Bulk Carriers - Changing our view to Neutral as market gets chall...

Stock prices of dry bulk shipping companies constituting the Drewry Dry Bulk Equity Index came under pressure in the beginning of 2022 after a great performance in 2021, but market disruptions in the aftermath of the Russia-Ukraine conflict led to a surge in demand and earnings of dry bulk carriers. As a result, the index as well as the stock price of Star Bulk Carriers (SBLK) rose from February to May, but both declined thereafter due to demand concerns in China in the aftermath of Covid restri...

Nikesh Shukla
  • Nikesh Shukla

Nordic American Tankers to benefit from improved supply-demand fundame...

The crude tanker market was largely on an uptrend throughout the year barring the initial weakness amid the Omicron-led demand concerns and high oil prices. We expected the tanker market to recover gradually in 2022, but the changes in trade patterns as a result of Europe’s move to reduce energy dependence on Russia in the aftermath of the Russia-Ukraine conflict accelerated the pace of recovery in the crude tanker market. The diversion of Russian barrels on long-haul routes to Asia and increase...

Nikesh Shukla
  • Nikesh Shukla

Diana Shipping - Recent plunge in stock prices offers opportunity to a...

Stock prices of Diana Shipping Inc (DSX) and other companies operating in the dry bulk shipping market have been on a roller coaster ride in 2022. After a dream run in 2021, the stock price of DSX came under pressure in the beginning of 2022 before the rally from February to May. Covid-19 restrictions in China and increased tensions between Russia and the West in the aftermath of the conflict in Ukraine took a toll on dry bulk shipping equities in June and the early part of July before the stock...

Ankush Kathuria
  • Ankush Kathuria

ICTSI mid year review

The stock price of ICTSI continues to outperform the broader Drewry Port Equity Index. Even though the stock price is down by 11.2% YTD, it has outperformed the Drewry Port Equity index. At the current EV/EBITDA level, ICTSI’s valuation is almost at par with the Drewry Port Equity Index but is still at a 10% discount compared with its long-term average, highlighting the scope for the stock to move up. We estimate the fair value of the company at PHP 218.7, converting into a potential upside of 1...

Rahul Kapoor
  • Rahul Kapoor

Dry bulk shipping - Turning Neutral as normalisation takes hold

​We at DMER believe the long-awaited normalisation process has already begun; even as we highlight that recovery will be slow, the time to be permanently bearish on the sector has passed. On the demand side, Chinese hard landing and steel capacity rationalisation have been pushed further out. The Chinese stimulus in 1Q16 was unexpected, but the key near-term takeaway is that the policy makers seem to have abandoned the transition in the medium term and are back to supporting the economy by tri...

Rahul Kapoor
  • Rahul Kapoor

Container Shipping - Recovery further away on industry re-alignment

​In our outlook report released in February (Container Shipping, 2016 - Stock prices discounting the worst), we had argued about how carriers are facing the prisoner’s dilemma and how M&A will become a recurring theme this year, with any related decisions likely be driven by opportunity rather than immediate financial rational. The argument has played out well with the current M&A activities suggesting the following: a) shipping lines are focusing more on alliances and resource sharing; b) M...

Rahul Kapoor
  • Rahul Kapoor

Port Operators - Valuations downshift on structural changes

Market multiples justify softening yield Valuations adjustment to a new normal Cheapest valuation in 7 years on structural weakness to drive M&A DP World: Strong profitability with sustainable growth momentum , Disciplined portfolio structure underpins yield growth Westports: Unattractive valuation with significant downside, Throughput expected to suffer on prospective alliance changes Global Ports: Bolstering fundamentals amid macro headwinds, Throughput expected to suffer on prospective allian...

Rahul Kapoor
  • Rahul Kapoor

DMER Equity Insights - May 2016

​Mixed monetary stance adopted by the central banks; dry bulk shipping stage a comeback• China’s thrust is on credit expansion, but growth remains sluggish• Investors’ interest reignited in dry bulk stocks amid the rally in Baltic indices• Gas shipping stocks getting back on investors’ radar; Gaslog emerges as the top performer• Amid container industry realignment, price performance a mixed bag• Correction in tanker stock valuations inevitable as freight rates to soften further...

Ankush Kathuria
  • Ankush Kathuria

Could disruptive technologies in container ports and terminals be a ga...

The container ports and terminals sector is witnessing increased adoption of innovative technologies such as automation and digitalisation. Higher automation reduces labour costs, which in turn lowers operating leverage and can make operating profit more resilient. However, this may lead to strained relations with the trade union. Currently, terminal operators are opting for varying degrees of automation, depending on their financial and technical resources. We are optimistic about the current a...

Rahul Kapoor
  • Rahul Kapoor

Gas Shipping - Gaining Traction Amid Recovery in Oil Prices

The rebound in crude oil and gas prices brought some solace to shareholders of gas shipping companies as stocks of LNG and LPG operators started trending up. Nonetheless, investors have been discreet while backing a company. Since the start of the year, Gaslog in the LNG shipping and StealthGas among the LPG ship operators have yielded handsome returns. We believe attractive valuation was one of the driving factor, which led investors to bottom fishing.LPG shipping – US ethylene plants to aid ...

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