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SCI - Fundamental Analysis: Financial Health & Valuation

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Rating: 3.5

Last Updated Time : 19 Mar 26, 07:11 pm

Fundamental Rating: 3.5

Stock Code SCI Market Cap 11,217 Cr. Current Price 240 ₹ High / Low 280 ₹
Stock P/E 10.3 Book Value 166 ₹ Dividend Yield 2.74 % ROCE 10.1 %
ROE 11.0 % Face Value 10.0 ₹ DMA 50 241 ₹ DMA 200 228 ₹
Chg in FII Hold 0.64 % Chg in DII Hold -0.17 % PAT Qtr 393 Cr. PAT Prev Qtr 176 Cr.
RSI 47.2 MACD -1.72 Volume 41,40,897 Avg Vol 1Wk 45,33,923
Low price 143 ₹ High price 280 ₹ PEG Ratio 12.3 Debt to equity 0.29
52w Index 70.9 % Qtr Profit Var 507 % EPS 23.3 ₹ Industry PE 11.3

📊 Financial Overview

  • Revenue & Profit Growth: Quarterly PAT surged from ₹176 Cr. to ₹393 Cr. (507% growth YoY).
  • Margins: ROE at 11.0% and ROCE at 10.1% → moderate efficiency.
  • Debt: Debt-to-equity ratio of 0.29 → manageable leverage.
  • Cash Flow: Supported by strong profit growth, though cyclical in nature.
  • Return Metrics: EPS at ₹23.3, showing improved earnings power.

💹 Valuation Indicators

  • P/E Ratio: 10.3 vs Industry PE of 11.3 → slightly undervalued.
  • P/B Ratio: Price ₹240 / Book Value ₹166 ≈ 1.45.
  • PEG Ratio: 12.3 → expensive relative to growth sustainability.
  • Intrinsic Value: Appears undervalued, offering margin of safety.

🏢 Business Model & Competitive Advantage

  • Operates in shipping and logistics, critical for India’s trade infrastructure.
  • Competitive advantage lies in government backing and fleet scale.
  • Challenges include cyclical demand, global freight volatility, and regulatory risks.

📈 Entry Zone Recommendation

  • Technicals: RSI at 47.2 (neutral), MACD negative, price near 50DMA (241) and above 200DMA (228).
  • Entry Zone: Attractive accumulation near ₹225–235 for long-term investors.
  • Holding Guidance: Suitable for dividend-seeking and value investors; long-term holding depends on global trade stability.


✅ Positive

  • Quarterly PAT growth of 507% shows strong momentum.
  • Dividend yield at 2.74% provides income stability.
  • FII holdings increased (+0.64%).

⚠️ Limitation

  • ROE (11.0%) and ROCE (10.1%) remain modest.
  • PEG ratio high at 12.3, suggesting valuation risk relative to growth.
  • Business highly cyclical and dependent on global trade flows.

📉 Company Negative News

  • DII holdings decreased (-0.17%).
  • MACD negative, showing weak technical momentum.
  • Stock corrected from ₹280 to ₹240.

📈 Company Positive News

  • Quarterly PAT surged to ₹393 Cr.
  • FII confidence increased (+0.64%).
  • Dividend yield at 2.74% supports investor interest.

🌐 Industry

  • Shipping industry is cyclical but critical for global trade.
  • Industry PE at 11.3 indicates sector trades at fair valuations.
  • Government support and infrastructure growth provide long-term opportunities.

🔎 Conclusion

  • SCI shows strong profit growth and attractive dividend yield.
  • Valuations are fair, offering margin of safety, but cyclical risks remain.
  • Best considered for long-term investors with entry near ₹225–235; holding depends on trade demand and earnings consistency.

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