Multibagger Shipping Stock Under Rs 40 Hits Upper Circuit After Stellar Quarterly Results; Revenue Soars 1,156 Per cent, Turns Profitable

The company’s shares have delivered a multibagger return of over 100 per cent in the past 1 year.

Incorporated in 2010, Essar Shipping Ltd is involved in fleet operating and chartering activities, operating both international and coastal voyages. The company has announced a stellar quarterly performance.

This Small-Cap company is an integrated logistics services provider engaged in sea transportation, logistics services, and oilfield services. It conducts fleet operating and chartering activities and operates international and coastal voyages.

Financial Performance

According to the Quarterly Results, in Q2FY25, Essar Shipping Ltd recorded a revenue of Rs 148 crore, representing a growth of 1156 per cent YoY from Rs 12 crore. The operating loss for Q2FY25 stood at Rs 6 crore compared to Rs 13 crore. The company posted a net profit of Rs 642 crore for Q2FY25 compared to a loss of Rs 36 crore.

Looking at the annual performance, the company generated a revenue of Rs 20 crore in FY24, compared to Rs 61 crore in FY23. The operating loss for FY24 was Rs 67 crore with a net loss of Rs 104 crore.

Stock Performance

At the start of Monday’s trading session, shares of Essar Shipping Ltd opened at Rs 36.19 per share, compared to Thursday’s closing figure of Rs 34.47 per share on the BSE. Currently, the shares are at Rs 36.19 per share. The stock has rallied 5 per cent today and hit the upper circuit, reflecting strong demand in the market. The company's current market capitalization stands at Rs 749.05 crore, and the stock has generated an impressive multibagger return of over 105 per cent in the past 1 year.

According to Essar Shipping Ltd's shareholding pattern, promoters own a 73.75 per cent stake, while public investors hold 26.21 per cent. DIIs own a 0.02 per cent in Q2 FY25.

Disclaimer: The article is for informational purposes only and not investment advice.