SCI - Investment Analysis

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

Investment Rating: 4.2

📊 Long-Term Investment Analysis

Shipping Corporation of India (SCI) shows moderate potential for long-term investment, with a few caveats

✅ Strengths

Valuation: Current P/E of 11.9 is below the industry average of 13.8, suggesting undervaluation.

Debt-to-Equity: Low at 0.27, indicating financial stability.

ROE & ROCE: ROE at 10.6% and ROCE at 9.89% are decent for a capital-intensive industry.

Promoter Holding: Strong at 63.75%, indicating confidence.

FII Interest: Increased by 1.46%, a positive institutional signal.

⚠️ Weaknesses

PEG Ratio: -26.4 indicates either negative or negligible earnings growth, which is a red flag.

Dividend Yield: Very low at 0.23%, not attractive for income-focused investors.

Quarterly Profit Volatility: Qtr Profit Var of -39.8% suggests earnings inconsistency.

Volume Decline: Current volume is lower than 1-week average, hinting at reduced investor interest.

💰 Ideal Entry Price Zone

Based on intrinsic valuation and technical levels

Intrinsic Value Estimate: ₹158.37

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Current Price: ₹215

DMA 50/200: ₹213 / ₹204

Suggested Entry Zone: ₹180–₹195 This range offers a margin of safety below current levels and aligns with valuation and technical support.

🧭 Exit Strategy & Holding Period

If you already hold SCI, consider the following

📈 Holding Strategy

Time Horizon: 3–5 years minimum to capture long-term maritime growth and potential privatization upside.

Growth Targets: Forecasts suggest potential targets of ₹300–₹500 by 2026 and ₹1,000–₹1,900 by 2030

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🚪 Exit Strategy

Exit on Strength: Consider partial exit if price exceeds ₹300–₹330 in 2025–2026, especially if fundamentals don’t improve.

Trailing Stop: Use a trailing stop-loss once price crosses ₹275 to protect gains.

Re-evaluate: If PEG ratio remains negative and earnings volatility continues, reassess holding beyond 2026.

Would you like a comparison with similar shipping or transport stocks to see if SCI is the best pick in its sector?

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www.alphaspread.com

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moneymintidea.com

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dailybulls.in

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