SCI - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:16 pm

Fundamental Rating: 3.2

📊 Financials: SCI has a market cap of ₹9,768 Cr. Current price is ₹210 with a 52-week high/low of ₹280/₹138. PAT this quarter is ₹176 Cr vs ₹343 Cr in the previous quarter, showing a sharp decline. ROCE at 10.1% and ROE at 11.0% reflect moderate efficiency. Debt-to-equity ratio of 0.35 indicates manageable leverage.

💹 Valuation: Stock P/E is 13.0, slightly above industry PE of 12.3, suggesting fair valuation. Book value is ₹171, giving a P/B ratio of ~1.23, which is reasonable. PEG ratio at 15.4 indicates weak earnings growth relative to valuation. EPS is ₹16.2, showing profitability but inconsistent due to quarterly volatility. Dividend yield of 3.18% adds shareholder value.

🏭 Business Model: SCI operates in shipping and logistics, with exposure to cargo, passenger, and offshore services. Competitive advantage lies in its fleet size and government backing, but profitability is cyclical and sensitive to global trade and freight rates.

📈 Entry Zone: Technically, DMA 50 (₹233) and DMA 200 (₹221) are above current price, showing bearish trend. Entry is favorable near ₹200–₹210 if price consolidates. Current RSI at 30.2 indicates oversold conditions, offering potential accumulation opportunity.

🕰️ Long-Term Holding: Dividend yield and fair valuation support cautious long-term holding. However, cyclical risks and weak earnings growth limit compounding potential. Investors should accumulate only on dips closer to intrinsic value zones.

Positive

• ✅ Fair valuation (P/E 13.0 vs industry 12.3)
• ✅ Reasonable P/B ratio (~1.23)
• ✅ Dividend yield of 3.18%
• ✅ FII holding increased (+0.35%)

Limitation

• ⚠️ Quarterly PAT decline (343 Cr → 176 Cr)
• ⚠️ PEG ratio very high (15.4)
• ⚠️ ROCE (10.1%) and ROE (11.0%) only moderate

Company Negative News

• 📉 DII holding reduced (-0.01%)
• 📉 Quarterly profit variation negative (-39.4%)
• 📉 Bearish technical trend (MACD -8.25)

Company Positive News

• 📈 Dividend yield attractive at 3.18%
• 📈 FII inflows (+0.35%)

Industry

• 🏭 Shipping industry PE at 12.3 highlights cyclical nature
• 🏭 Sector performance tied to global trade and freight rates

Conclusion

🔎 SCI offers fair valuation and dividend yield but faces cyclical risks and declining profitability. Entry zone lies near ₹200–₹210. Long-term investors should accumulate cautiously on dips, while monitoring global trade trends and earnings stability.

Would you like me to extend this with a peer benchmarking overlay comparing SCI against other shipping and logistics companies, or a sector scan to highlight undervalued transport players?