52-week high alert in this low PE high ROE multibagger stock: This shipping company contracts to sell its 2006 built Supramax Dry Bulk Carrier, Jag Rohan!
The stock gave multibagger returns of over 280 per cent in just 3 years with a PE of 4.91x and an ROE of 29.22 per cent
The Great Eastern Shipping Company Limited (G E Shipping) has contracted to sell its 2006 built Supramax Dry Bulk Carrier, Jag Rohan of about 52,450 dwt on September 27, 2023, to an unaffiliated third party. The vessel will be delivered to the new buyer by Q3FY24.
Including Jag Rohan, the company’s current fleet stands at 42 vessels, comprising 28 tankers (6 crude carriers, 18 product tankers, 4 LPG carriers) and 14 dry bulk carriers (2 Capesize, 7 Kamsarmax, 5 Supramax) aggregating 3.38 mn dwt.
Earlier, the company contracted to buy a medium-range (MR) product tanker of about 46,197 dwt on September 15, 2023. The 2008-built vessel is expected to join the Company’s fleet in Q3 FY24. The Company’s current capacity utilization is close to 100 per cent.
Great Eastern Shipping Company Ltd, along with its subsidiaries is a major player in the Indian shipping and Oil drilling services industry. The company has a market cap of over Rs 12,500 crore and has delivered good profit growth of 134 per cent CAGR over the last 5 years. The stock is trading at 1.19 times its book value and is providing a good dividend yield of 3.36 per cent with a healthy dividend payout of 17.6 per cent.
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On Wednesday, shares of G E Shipping gained 0.58 per cent to Rs 856.40 per share with an intraday high of Rs 906.95 and an intraday low of Rs 845. The stock also made a new 52-week high of Rs 906.95 per share with a spurt in volume by more than 3.89 times on BSE.
The stock gave multibagger returns of over 280 per cent in just 3 years with a PE of 4.91x and an ROE of 29.22 per cent. Investors should keep an eye on this Mid-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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