GESHIP - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:15 pm

Fundamental Rating: 4.4

📊 Core Financials

• Revenue & Profit Growth: Quarterly PAT increased from 388 Cr. to 460 Cr. (↑ 18.6%), showing steady growth.
• Margins: ROCE at 14.9% and ROE at 15.2% indicate healthy profitability and efficient capital use.
• Debt Ratios: Debt-to-equity at 0.10 reflects very low leverage, strong financial stability.
• Cash Flows: Dividend yield at 2.68% provides attractive shareholder returns, supported by consistent earnings.

💹 Valuation Indicators

• P/E Ratio: 10.5, below industry PE of 12.3, suggesting undervaluation.
• P/B Ratio: Current Price / Book Value ≈ 1.24, reasonable and close to fair value.
• PEG Ratio: 0.34, indicates strong growth potential relative to valuation.
• Intrinsic Value: Based on EPS (₹125) and industry PE, fair value ≈ ₹1,500–1,550, implying upside potential.

🏢 Business Model & Competitive Advantage

• Great Eastern Shipping operates in shipping and offshore services, catering to global trade and energy sectors.
• Competitive advantage lies in diversified fleet and strong operational efficiency.
• Low debt and consistent profitability enhance resilience against cyclical industry risks.

📈 Entry Zone & Holding Guidance

• Entry Zone: Attractive between ₹1,000–1,050, near DMA200 support (₹1,027).
• Long-Term Holding: Strong candidate for long-term investors seeking exposure to shipping with stable dividends.

✅ Positive

• Strong quarterly profit growth (↑ 18.6%).
• Low debt-to-equity ratio (0.10).
• Dividend yield at 2.68% provides steady income.
• FII (+0.24%) and DII (+0.73%) holdings increased, showing investor confidence.

⚠️ Limitation

• Quarterly profit variation modest at 3.87% YoY.
• Shipping industry remains cyclical, sensitive to global trade and energy demand.
• Liquidity slightly lower with declining average weekly volume.

📉 Company Negative News

• No major negative news reported; risks remain tied to global shipping cycles and fuel costs.

📢 Company Positive News

• Consistent profit growth and strong dividend payout.
• Institutional investor confidence reflected in increased FII and DII holdings.

🏭 Industry

• Industry PE at 12.3, slightly above company’s P/E (10.5), suggesting undervaluation.
• Shipping sector benefits from rising global trade and energy demand.
• Cyclical risks remain due to freight rate volatility and global economic conditions.

🔎 Conclusion

• Great Eastern Shipping shows strong fundamentals with low debt, healthy profitability, and attractive dividends.
• Valuation suggests upside potential compared to intrinsic value and industry peers.
• Entry recommended near ₹1,000–1,050; long-term hold viable for stable returns and sector exposure.