250 per cent returns: This multibagger shipping company takes delivery of tanker, Jag Parth and signs contracts to buy a Kamsarmax Dry Bulk Carrier!
The stock gave multibagger returns of over 250 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) took delivery of a 2008 built medium range (MR) product tanker “Jag Parth” of about 46,197 dwt. The company had contracted to buy the vessel in Q2FY24. Additionally, the company has signed contracted to buy a Kamsarmax Dry Bulk Carrier of about 80,919 dwt on October 27, 2023. The 2014 built vessel is expected to join the company’s fleet in Q3FY24.
The Company’s current fleet stands at 42 vessels, comprising 29 tankers (6 crude carriers, 19 product tankers, 4 LPG carriers) and 13 dry bulk carriers aggregating 3.33 Mn dwt. The proposed ship will be financed entirely from internal accruals. The purpose of the acquisition is modernization and expansion of the fleet.
Earlier, the company 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. On October 12, 2023, the company delivered its 2006-built Supramax Dry Bulk Carrier “Jag Rohan” to the buyers.
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 Rs 12,165 crore and has delivered good profit growth of 54 per cent CAGR over the last 3 years. The stock is trading at 1.06 times its book value and is providing a good dividend yield of 3.48 per cent with a healthy dividend payout of 17.6 per cent.
On Monday, shares of G E Shipping plunged 2.74 per cent to Rs 742.25 per share with an intraday high of Rs 765 and an intraday low of Rs 734.3.
The stock gave multibagger returns of over 250 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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