⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
GESHIP - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.4
| Stock Code | GESHIP | Market Cap | 17,031 Cr. | Current Price | 1,193 ₹ | High / Low | 1,266 ₹ |
| Stock P/E | 9.84 | Book Value | 887 ₹ | Dividend Yield | 2.49 % | ROCE | 14.9 % |
| ROE | 15.2 % | Face Value | 10.0 ₹ | DMA 50 | 1,111 ₹ | DMA 200 | 1,050 ₹ |
| Chg in FII Hold | 0.82 % | Chg in DII Hold | 0.36 % | PAT Qtr | 654 Cr. | PAT Prev Qtr | 460 Cr. |
| RSI | 66.8 | MACD | 20.1 | Volume | 3,58,288 | Avg Vol 1Wk | 9,84,839 |
| Low price | 797 ₹ | High price | 1,266 ₹ | PEG Ratio | 0.32 | Debt to equity | 0.10 |
| 52w Index | 84.3 % | Qtr Profit Var | 55.6 % | EPS | 123 ₹ | Industry PE | 12.6 |
📊 Core Financials
- Revenue & Profit Growth: Quarterly PAT rose from 460 Cr. to 654 Cr., showing strong sequential growth with 55.6% YoY variation.
- Margins: ROE at 15.2% and ROCE at 14.9% reflect healthy profitability and efficient capital utilization.
- Debt Ratios: Debt-to-equity at 0.10 indicates a very low-leverage balance sheet.
- Cash Flows: Strong operating cash flows supported by shipping and logistics operations.
- Return Metrics: EPS at 123 ₹ highlights robust earnings power.
💹 Valuation Indicators
- P/E Ratio: 9.84, below industry PE of 12.6, suggesting undervaluation.
- P/B Ratio: ~1.35 (Current Price / Book Value), attractive relative to assets.
- PEG Ratio: 0.32, very favorable, showing strong growth-adjusted valuation.
- Intrinsic Value: Current price (1,193 ₹) appears undervalued, offering upside potential.
🏢 Business Model & Competitive Advantage
- Operates in shipping and logistics with diversified fleet and global presence.
- Competitive advantage lies in scale, efficiency, and strong brand reputation in maritime services.
- Resilient business model with exposure to global trade cycles and commodity shipping demand.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 1,100 ₹ – 1,150 ₹ (near DMA 200).
- Long-Term Holding: Suitable for long-term investors seeking exposure to global shipping growth, with strong fundamentals and undervaluation supporting potential upside.
Positive
- Debt-light balance sheet.
- Strong quarterly PAT growth of 55.6%.
- Healthy ROE and ROCE.
- Dividend yield of 2.49% provides income support.
- FII (+0.82%) and DII (+0.36%) inflows show institutional confidence.
Limitation
- Business is cyclical, dependent on global trade and commodity demand.
- RSI at 66.8 indicates overbought conditions, suggesting near-term caution.
- Volume trends show reduced liquidity compared to average weekly levels.
Company Negative News
- Short-term technical indicators (RSI and MACD) suggest overbought momentum.
Company Positive News
- Strong quarterly PAT growth and rising institutional inflows.
- Undervalued compared to industry PE, offering upside potential.
Industry
- Shipping and logistics sector benefits from global trade recovery and rising commodity demand.
- Industry PE at 12.6 reflects fair valuations and moderate optimism.
Conclusion
- Great Eastern Shipping (GESHIP) is a fundamentally strong company with robust earnings, low debt, and attractive valuations.
- Dividend yield and institutional inflows add to investor confidence.
- Best suited for long-term investors seeking exposure to global shipping, with entry near support levels for optimal risk-reward.
Would you like me to also prepare a comparison with peers like Shipping Corporation of India or Essar Shipping to highlight GESHIP’s relative positioning in the maritime sector?