Shipping Company with a PE of 6.31x - Contract to Sell Suezmax Crude Tanker Jag Lalit; Fleet Strength at 43 Vessels!
The company’s shares have delivered an impressive return of over 50 per cent in the past 1 year.
Great Eastern Shipping Company Ltd (G E Shipping) has entered into a contract to sell its Suezmax crude tanker, Jag Lalit, built-in 2005 with a capacity of approximately 158,344 dwt, to an unaffiliated third party as of September 13, 2024. The vessel is scheduled for delivery to the new owner by Q3 FY25.
Including Jag Lalit, the company’s current fleet consists of 43 vessels, comprising 29 tankers (6 crude carriers, 19 product tankers, and 4 LPG carriers) and 14 dry bulk carriers (2 Capesize, 8 Kamsarmax, and 4 Supramax), with a combined capacity of 3.41 million dwt. Additionally, the company had contracted the sale of one MR product tanker in July 2024 and one Supramax dry bulk carrier in August 2024, both of which are set to be delivered by Q3 FY25.
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Founded in 1948 with the purchase of a Liberty ship, Great Eastern Shipping Company Ltd (GE Shipping) has grown into India's largest private sector shipping company by FY24. As of FY24, GE Shipping, along with its subsidiaries, operates 43 ships and 23 offshore assets, cementing its position as a major player in the Indian shipping and oil drilling services industry.
On Friday, the shares of Great Eastern Shipping closed the day at around Rs 1260.75 per share. The company’s current market capitalization stands at Rs 18,528 crore. The stock has delivered a return of over 50 per cent in the past year.
As per the Quarterly Results, in the first quarter of FY25, GE Shipping recorded a revenue of Rs 1508 crore. The operating profit stood at Rs 911 crore. The net profit for the period was Rs 812 crore. Looking at the annual performance, the company generated a revenue of Rs 5255 crore in FY24, compared to Rs 5690 crore in FY23. The operating profit for FY24 was Rs 3022 crore with a net profit of Rs 2614 crore.
According to the shareholding pattern, promoters own 30.08 per cent, and 28.05 per cent is owned by public investors. FIIs and DIIs own 24.51 per cent and 17.36 per cent stake in the company. DIIs increased their stake from 16.60 per cent to 17.36 per cent in Q1 FY25.
Investors must keep this Small-Cap company on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.