SCI - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 3.8

🚢 Shipping Corporation of India (SCI) shows solid valuation and improving profitability, though high PEG and moderate return ratios suggest tempered long-term expectations.

📈 Positive

• Attractive Valuation: P/E of 13.9 is in line with the industry average of 13.6.
• Strong Dividend Yield: 2.54% offers consistent income for shareholders.
• Improving Profitability: PAT rose from ₹172 Cr. to ₹343 Cr., a 19.6% quarterly increase.
• Healthy EPS: ₹18.7 supports long-term earnings visibility.
• Positive FII Sentiment: FII holdings increased by 0.35%.

⚠️ Limitation

• High PEG Ratio: 16.5 suggests valuation may not be justified by growth.
• Moderate Return Metrics: ROCE at 10.1% and ROE at 11.0% are below top-tier benchmarks.
• Volume Drop: Current volume is nearly half the weekly average, indicating reduced trading interest.

📉 Company Negative News

• Privatization delays have created uncertainty around strategic direction.
• Operational challenges in fleet modernization and global freight volatility.

📈 Company Positive News

• Strong quarterly earnings driven by improved freight rates and cost optimization.
• Privatization prospects continue to attract investor interest.
• Government support for maritime infrastructure and logistics boosts long-term outlook.

🏭 Industry

• Shipping and logistics sector benefits from global trade recovery and infrastructure push.
• Industry P/E of 13.6 reflects moderate valuation norms.
• Peers include Great Eastern Shipping, Mazagon Dock, and Cochin Shipyard.

🧾 Conclusion

• Entry Zone: ₹240–₹250 could be a favorable accumulation range based on RSI and DMA levels.
• Long-Term View: Hold for 2–4 years; watch for privatization developments and margin expansion.
• Valuation Edge: Reasonable pricing with upside potential if strategic reforms materialize.