SCI - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.5

📊 Core Financial Analysis

Profitability & Returns

EPS: ₹18.1 — solid for a ₹215 stock, indicating decent earnings power.

ROE: 10.6% & ROCE: 9.89% — moderate returns, typical for asset-heavy PSUs.

PAT Qtr: ₹185 Cr vs ₹75.5 Cr — strong sequential growth, but YoY decline of 39.8% suggests earnings volatility.

Debt & Leverage

Debt-to-Equity: 0.27 — low leverage, which is healthy for a capital-intensive shipping business.

Dividend Yield: 0.23% — minimal, but consistent with reinvestment needs in fleet and infrastructure.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio 11.9 Below industry average of 13.8 — undervalued

P/B Ratio ~1.21 Attractive given book value of ₹178 and asset-heavy nature

PEG Ratio -26.4 Negative PEG reflects earnings inconsistency, not ideal for growth valuation

Intrinsic Value ~₹230–₹250 Current price is slightly below fair value, offering upside potential

🏢 Business Model & Competitive Edge

Shipping Corporation of India (SCI) is a government-owned maritime transport and logistics company.

Operates across bulk carriers, tankers, container ships, and offshore services.

Competitive edge lies in fleet scale, strategic importance, and government backing.

Potential disinvestment could unlock value and improve operational efficiency.

Business is cyclical, sensitive to global trade, freight rates, and fuel costs.

📉 Technical & Sentiment Indicators

RSI: 46.2 — neutral, no strong momentum.

MACD: 0.31 — mild bullish crossover.

Volume below average — suggests consolidation or reduced interest.

DMA 50 & 200 near current price — stable technical base.

FII holding up, DII down — mixed institutional sentiment.

🧠 Investment Guidance

🔍 Entry Zone (If Undervalued)

Ideal Buy Range: ₹190–₹210

Near DMA support and below intrinsic value.

Suitable for value investors with medium-term horizon.

📈 Long-Term Holding View

Hold with cautious optimism

Attractive valuation and low debt.

Disinvestment could be a major catalyst.

Monitor freight trends and global trade recovery.

Would you like insights into how privatization could reshape SCI’s valuation or a comparison with global shipping giants like Maersk or COSCO?

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