SCI - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.6

📊 Core Financials Overview

Profitability

ROE of 11.0% and ROCE of 10.1% are modest, indicating average capital efficiency.

EPS of ₹18.7 supports a low P/E ratio of 11.7, suggesting reasonable earnings relative to price.

PAT jumped from ₹172 Cr to ₹343 Cr QoQ — a 19.6% variation, showing strong earnings momentum.

Balance Sheet Strength

Debt-to-equity ratio of 0.29 is healthy, reflecting manageable leverage.

Dividend yield of 3.01% adds solid income appeal for long-term holders.

Cash Flow & Stability

Book Value of ₹166 vs Current Price ₹219 implies a P/B ratio of ~1.32 — fair valuation.

PEG ratio of 13.9 is inflated due to recent earnings spike, not sustainable long-term.

📉 Valuation Metrics

Metric Value Insight

P/E Ratio 11.7 Undervalued vs industry PE of 14.3

P/B Ratio ~1.32 Fairly priced

PEG Ratio 13.9 Skewed by short-term profit surge

Intrinsic Value ~₹240–₹260 Slightly above current price

SCI appears undervalued, especially on P/E and dividend metrics, with upside potential if earnings stabilize.

🚢 Business Model & Competitive Edge

Sector: Shipping Corporation of India Ltd operates in maritime logistics, offering bulk cargo, container shipping, and offshore services.

Strengths

Government-backed entity with strategic importance

Strong dividend yield and improving profitability

Rising FII interest (+1.46%) signals institutional confidence

Challenges

Cyclical exposure to global trade and fuel prices

PEG distortion and moderate return ratios

According to TopStockResearch, SCI is currently undervalued with a P/E of 10.98 and EV/EBITDA of 5.71

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📌 Entry Zone Recommendation

Suggested Entry Range: ₹200–₹215

Near 200 DMA (₹207) and below current price

RSI at 57.3 suggests neutral momentum

MACD positive, indicating mild bullish trend

🧭 Long-Term Holding Guidance

Hold if Already Invested: Strong dividend and improving fundamentals support long-term value.

Accumulate on Dips: Especially near ₹200 for better margin of safety.

Watchlist Triggers

Sustained EPS growth

Debt reduction

Strategic divestment or modernization plans

SCI is a classic value play with improving fundamentals and income potential. Let me know if you'd like a peer comparison or sector outlook to round out the view.

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