FIIs bought 20,98,270 shares & DIIs increased their stake: Low PE & high ROE multibagger shipping stock hit a 52-week high on July 11
The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 725.40 per share and a whopping 300 per cent in 3 years.
Today, one of the Top Gainers on BSE, shares of Great Eastern Shipping Company Limited surged 13.3 per cent to an intraday high & 52-week high of Rs 1,542.80 from its previous closing of Rs 1,361.75. At the closing bell, shares of the company were trading at Rs 1,455.65 per share, up 6.90 per cent with a spurt in volume by more than 6.70 times on BSE.
The Great Eastern Shipping Company Limited owns and operates cargo ships. The company's fleet of vessels includes bulk carriers, tankers and offshore supply vessels. The company also acts as an agent for several foreign shipping companies. The company has a market cap of over Rs 21,000 crore and has delivered good profit growth of 194 per cent CAGR over the last 5 years.
In March 2024, FIIs bought 20,98,270 shares and increased their stake to 27.41 per cent compared to 25.94 per cent in March 2023. Additionally, DIIs increased their stake to 16.60 per cent compared to 16.39 per cent in December 2023.
The Great Eastern Shipping Company reported its highest-ever net profits in Q4 and FY24, driven by strong market conditions for crude tankers, product tankers, and LPG carriers. While dry bulk rates were slightly lower, the company still achieved significant EBITDA growth due to contract repricing and expects future contracts to be even more favourable. The company's financial performance has been improving steadily, with a 25 per cent CAGR in standalone NAV between March 2019 and March 2024.
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Looking ahead, the company is cautious about potential challenges like bunker oil price uncertainty and a possible oversupply in the LPG carrier market, but they remain optimistic due to a strong order book for gas carriers, historically low scrapping levels, and their intention to invest in ships at favourable prices. They are also setting up a subsidiary in GIFT City to expand their shipping business. Overall, the company is well-positioned to benefit from the ongoing favourable market conditions in the offshore segment.
The shares of the company have a PE of 9x and an ROE of 23 per cent. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 725.40 per share and a whopping 300 per cent in 3 years. Investors should keep an eye on this Mid-Cap shipping stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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