⚠ 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.
SCI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | SCI | Market Cap | 9,943 Cr. | Current Price | 214 ₹ | High / Low | 280 ₹ |
| Stock P/E | 13.2 | Book Value | 171 ₹ | Dividend Yield | 3.09 % | ROCE | 10.1 % |
| ROE | 11.0 % | Face Value | 10.0 ₹ | DMA 50 | 222 ₹ | DMA 200 | 220 ₹ |
| Chg in FII Hold | 0.64 % | Chg in DII Hold | -0.17 % | PAT Qtr | 176 Cr. | PAT Prev Qtr | 343 Cr. |
| RSI | 46.7 | MACD | -2.24 | Volume | 65,78,632 | Avg Vol 1Wk | 46,95,528 |
| Low price | 138 ₹ | High price | 280 ₹ | PEG Ratio | 15.6 | Debt to equity | 0.35 |
| 52w Index | 53.0 % | Qtr Profit Var | -39.4 % | EPS | 16.2 ₹ | Industry PE | 12.6 |
📊 Core Financials
- Quarterly PAT declined to 176 Cr from 343 Cr, showing significant earnings pressure (-39.4%).
- ROE at 11.0% and ROCE at 10.1% reflect modest capital efficiency.
- Debt-to-equity ratio at 0.35 indicates moderate leverage, manageable but worth monitoring.
- EPS at 16.2 ₹ provides a reasonable earnings base, supported by dividend yield of 3.09%.
💹 Valuation Indicators
- P/E ratio: 13.2, slightly above industry average of 12.6, suggesting fair valuation.
- P/B ratio: ~1.25 (214 ₹ / 171 ₹ book value), showing moderate premium pricing.
- PEG ratio: 15.6, very high, indicating poor growth-adjusted valuation.
- Intrinsic value appears close to current price, offering limited margin of safety.
🏢 Business Model & Competitive Advantage
- SCI operates in shipping and logistics, providing cargo transport and maritime services.
- Competitive advantage lies in government backing and established fleet operations.
- Exposure to global trade cycles makes earnings volatile but offers long-term growth potential.
📈 Entry Zone & Long-Term Guidance
- Entry zone: 200–210 ₹ range (near 200 DMA support at 220 ₹).
- Long-term holding viable for dividend-seeking investors with moderate risk appetite.
- Accumulation should be cautious due to earnings volatility and weak growth-adjusted valuation.
Positive
- Dividend yield of 3.09% provides stable income.
- Government backing ensures operational stability.
- FII holdings increased (+0.64%), showing foreign investor confidence.
Limitation
- Quarterly PAT decline (-39.4%) highlights earnings weakness.
- PEG ratio at 15.6 indicates poor growth-adjusted valuation.
- ROE (11.0%) and ROCE (10.1%) are modest compared to peers.
Company Negative News
- DII holdings decreased (-0.17%), showing reduced domestic institutional support.
- Stock trading below 50 DMA (222 ₹), reflecting short-term weakness.
Company Positive News
- Dividend yield remains attractive at 3.09%.
- FII holdings increased, showing foreign confidence.
Industry
- Industry PE at 12.6, close to SCI’s 13.2, suggesting fair sector valuation.
- Shipping and logistics sector expected to grow steadily with global trade recovery.
Conclusion
- SCI offers dividend stability and government-backed operations but faces earnings volatility.
- Valuations are fair, but PEG ratio highlights weak growth prospects.
- Accumulation near 200–210 ₹ is suitable for long-term investors seeking dividend yield with moderate risk exposure.
I can also extend this into a peer comparison with Great Eastern Shipping and Shipping Corporation peers globally to highlight relative valuation and profitability. Would you like me to draft that next?