Essar Shipping Limited, a shipping company, provides sea transportation, logistics, and oilfields services. The company engages in the fleet operating and chartering activities consisting of tankers and dry bulkers; oilfields services, such as land and semi- submersible rigs; and logistics services, including trucks, trailers, and tippers.
It also offers contract drilling services to oil and gas companies. The company operates a fleet of 12 vessels, including a double hull very large crude oil carrier, 6 mini-capesize vessels, a panamax bulk carrier, 2 supramax bulk carriers, and 2 general cargo ships. It operates in India, Singapore, Cyprus, the United Arab Emirates, Taiwan, Kuwait, Demark, and Bangladesh. The company was incorporated in 2010 and is based in Mumbai, India. Essar Shipping Limited is a subsidiary of Essar Shipping Mauritius Holdings Limited.
Company Overview: Essar Shipping Limited is part of the Essar Group, a conglomerate with diversified business interests, including shipping, oil and gas, steel, power, and infrastructure. Essar Shipping is primarily engaged in the transportation of liquid and dry bulk cargo.
Financial Analysis of Essar Shipping Limited:
- Revenue and Profitability:
- Analyze the company’s revenue trends over the past few years. Look for consistent or improving revenue growth.
- Assess the company’s profitability by examining its gross profit margin, operating profit margin, and net profit margin. A stable or increasing margin indicates a healthier financial position.
- Debt and Liquidity:
- Review the company’s debt levels and debt-to-equity ratio. High debt can be a concern if the company faces difficulty in servicing it.
- Evaluate the company’s liquidity position by looking at its current ratio and quick ratio. A higher ratio suggests better short-term liquidity.
- Earnings per Share (EPS) and Dividends:
- Analyze the company’s earnings per share (EPS) trends. Increasing EPS over time is generally a positive sign.
- Check the dividend history and dividend payout ratio to see if the company rewards shareholders with regular dividends.
- Business Performance and Market Position:
- Assess the company’s market position, competitive advantages, and the demand outlook for its shipping services.
- Look for any significant contracts, joint ventures, or strategic partnerships that may impact the company’s future prospects.
- Industry and Economic Factors:
- Consider the overall shipping industry trends and how they might affect Essar Shipping’s operations.
- Evaluate the impact of economic factors such as global trade volumes, commodity prices, and geopolitical events on the company’s performance.
- Management and Corporate Governance:
- Evaluate the management team’s track record and experience in the shipping industry.
- Review the company’s corporate governance practices to ensure transparency and shareholder protection.
- Valuation Metrics:
- Use valuation metrics such as price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, and dividend yield to assess the company’s valuation compared to its peers and historical averages.
Essar Shipping Ltd Stocks COMPARISION
| Financials( ₹ in Cr) | GE Shipping Co | S C I | Shreyas Shipping | SEAMEC Ltd | Essar Shipping |
|---|---|---|---|---|---|
| Price | 764.45 | 98.45 | 365.60 | 722.60 | 11.05 |
| % Change | -0.96 | 0.20 | 2.81 | -2.11 | -1.34 |
| Mcap ₹ Cr | 10,913.82 | 4,585.79 | 802.78 | 1,837.21 | 228.71 |
| Revenue TTM ₹ Cr | 5,690.46 | 4,994.93 | 535.78 | 437.24 | 328.34 |
| Net Profit TTM ₹ Cr | 2,575.01 | 865.22 | 211.07 | 33.56 | -81.03 |
| PE TTM | 4.44 | 5.27 | 4.07 | 64.47 | 0.00 |
| 1 Year Return | 69.41 | 24.84 | 12.11 | -21.84 | 57.86 |
| ROCE | 21.26 | 8.73 | 30.88 | 3.26 | 0.00 |
| ROE | 28.10 | 9.90 | 40.15 | 3.78 | 0.00 |
Peer Comparison
| COMPANY | PRICERs. | MCAPCr. | P/B | P/E | EPSRs. | ROE% | ROCE% | P/S | EV/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
| GE Shipping | 764.45 | 10,913.84 | 1.28 | 4.64 | 164.74 | 31.17 | 25.15 | 2.26 | 3.40 |
| Shipping Corpn. | 98.45 | 4,585.79 | 0.72 | 5.73 | 17.18 | 9.57 | 8.53 | 0.92 | 3.80 |
| Seamec | 722.60 | 1,837.21 | 2.67 | 44.50 | 16.24 | 6.19 | 5.36 | 4.60 | 14.01 |
| Dredging Corp | 357.90 | 1,002.12 | 0.70 | 79.80 | 4.49 | 0.24 | 0.95 | 1.25 | 6.68 |
| Shreyas Shipping | 365.60 | 802.77 | 0.98 | 4.08 | 89.63 | 49.77 | 38.66 | 1.56 | 3.67 |
| Essar Shipping | 11.05 | 228.71 | 0 | 0.14 | 81.78 | 0 | 0 | 1.63 | 121.81 |
| Reliance Naval | 2.30 | 169.65 | 0 | 0 | -28.54 | 0 | -66.97 | 2.25 | -317.34 |
| Hariyana Ship Break | 100.10 | 61.73 | 0.43 | 14.75 | 6.78 | 1.47 | 4.24 | 0.37 | 2.80 |
| Chowgule Steamship | 14.25 | 51.74 | 1.44 | 146.15 | 0.10 | -113.59 | -114.07 | 0 | 92.29 |
| Mercator | 0.85 | 25.71 | 0 | 326.92 | 0.00 | 0 | 0 | 0 | 3,855.87 |
(Only the headline and picture of this report may have been reworked by the ShareMantras staff; the rest of the content is auto-generated from a syndicated feed.)