Shipping Stock Under Rs 50 Hits Upper Circuit on Friday – Stocks Rallied Over 185 Per cent in Just 1 Year

The company’s shares have delivered an impressive return of over 340 per cent in the past 2 years.

Incorporated in 2010, Essar Shipping Ltd is involved in fleet operating and chartering activities, operating both international and coastal voyages. The 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.

At the start of Friday's trading session, shares of Essar Shipping Ltd opened at Rs 38.92 per share, compared to the previous day's closing figure of Rs 38.92 per share on the BSE. Finally, the shares closed at Rs 40.86 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 845.70 crore, and the stock has generated an impressive multibagger return of over 185 per cent in the past 1 year.

As per the Quarterly Results, in Q1FY25, Essar Shipping Ltd recorded a revenue of Rs 3 crore representing a de-growth of 77 per cent YoY from Rs 11 crore. The operating loss for Q1FY25 stood at Rs 9 crore. The net loss for Q1FY25 was Rs 35 crore compared to a profit of Rs 26 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.

According to the shareholding pattern of Essar Shipping Ltd, promoters own a 73.75 per cent stake, while public investors hold 26.21 per cent. FIIs hold a 0.01 per cent stake and DIIs own a 0.02 per cent in Q1 FY25.

Investors must keep this Small-Cap stock on their radar.

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