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SCI - Fundamental Analysis: Financial Health & Valuation

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Rating: 3.3

Last Updated Time : 04 May 26, 11:42 am

Fundamental Rating: 3.3

Stock Code SCI Market Cap 14,183 Cr. Current Price 304 ₹ High / Low 323 ₹
Stock P/E 13.1 Book Value 166 ₹ Dividend Yield 2.16 % ROCE 10.1 %
ROE 11.0 % Face Value 10.0 ₹ DMA 50 260 ₹ DMA 200 236 ₹
Chg in FII Hold 1.85 % Chg in DII Hold 0.08 % PAT Qtr 393 Cr. PAT Prev Qtr 176 Cr.
RSI 68.6 MACD 16.9 Volume 83,71,025 Avg Vol 1Wk 1,34,66,728
Low price 158 ₹ High price 323 ₹ PEG Ratio 15.6 Debt to equity 0.29
52w Index 88.9 % Qtr Profit Var 507 % EPS 23.3 ₹ Industry PE 14.6

📊 SCI demonstrates moderate fundamentals with decent ROE (11.0%) and ROCE (10.1%). EPS of ₹23.3 provides earnings visibility, and dividend yield of 2.16% adds shareholder value. Valuation appears fair with P/E (13.1) slightly below industry average (14.6), though PEG ratio (15.6) signals significant overvaluation relative to growth. PAT surged sharply (+507% QoQ), highlighting strong profitability momentum. Current price ₹304 is near its resistance zone (₹320–323), making ₹285–295 an attractive entry zone for accumulation.

💡 Long-term investors may hold with a 2–4 year horizon if profitability sustains and ROE improves. Exit strategy: partial profit booking near ₹320–325 or full exit if PEG ratio rises further or earnings growth slows.

Positive

  • 📈 PAT growth of +507% QoQ (₹176 Cr. → ₹393 Cr.).
  • 💰 Dividend yield of 2.16% provides income support.
  • 📊 EPS of ₹23.3 supports earnings visibility.
  • 📈 Price above both 50 DMA (₹260) and 200 DMA (₹236), showing bullish momentum.

Limitation

  • ⚠️ PEG ratio (15.6) indicates significant overvaluation relative to growth.
  • 📉 ROCE (10.1%) and ROE (11.0%) are moderate, below ideal compounding levels.
  • 📊 RSI at 68.6 suggests near overbought conditions.

Company Negative News

  • 📉 High PEG ratio raises valuation concerns.
  • 📊 Profit volatility in past quarters despite recent surge.

Company Positive News

  • 📈 FII holding increased (+1.85%), showing strong foreign investor confidence.
  • 📊 DII holding increased slightly (+0.08%), reflecting domestic support.
  • 📈 Strong 52-week performance (+88.9%).

Industry

  • 🚢 Industry PE at 14.6 is slightly higher than SCI’s 13.1, suggesting fair valuation.
  • 📈 Shipping sector benefits from global trade recovery and rising freight demand.

Conclusion

⚖️ SCI is a moderately attractive investment with strong recent profitability and fair valuation, but PEG ratio signals caution. Ideal entry is near ₹285–295. Long-term investors may hold for 2–4 years, focusing on dividend yield and earnings momentum. Exit near ₹320–325 or on deterioration of profitability metrics.

This structured HTML report captures SCI’s fundamentals, valuation risks, and sector context with clear entry/exit guidance. Would you like me to extend this into a sector overlay comparing SCI with peers like GAIL, ONGC, and Shipping Corporation’s global competitors to highlight relative positioning?

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