Shares of India’s largest shipping company with a significant presence on the global maritime map surged nearly 10 percent on Thursday. The rally came in response to reports indicating the company’s plans for business expansion, guided by a strategic development plan.
With a market cap of Rs. 9,139 crores, the shares of Shipping Corporation of India Limited closed in the green at Rs. 196.2 on BSE, up by nearly 8 percent, compared to its previous closing price of Rs. 181.8. The stock has delivered negative returns of around 18 percent in one year, but witnessed a sharp gain of more than 10 percent in the last five trading sessions.
What’s the News
According to media reports, Shipping Corporation of India Limited (SCI) is gearing up for significant expansion, having crafted a comprehensive business development plan with the assistance of Deloitte. This strategic move is seen as the primary catalyst behind the notable increase in its stock price.
The plan aims to expand the fleet by adding more vessels, replacing the existing fleet, and boosting overall capacity, as per CNBC. In line with this, the Ministry of Shipping has reportedly advised the company to take as many vessels as possible to accelerate growth.
Additionally, it is also mentioned that, to further enhance its operational capacity, SCI may enter into Memorandum of Understandings (MoUs) with major public sector enterprises such as ONGC, Indian Oil Corporation, HPCL, and GAIL.
The expansion strategy also places strong emphasis on increasing SCI’s involvement in the operation and management of vessels engaged in oil imports. Several rounds of discussions have already been held between the Ministry of Shipping and the Ministry of Petroleum to align on this initiative.
Financial Performance
SCI reported a marginal decline in revenue from operations, experiencing a fall of nearly 6 percent YoY, decreasing from Rs. 1,413 crores in Q4 FY24 to Rs. 1,325 crores in Q4 FY25. Similarly, its net profit decreased during the same period from Rs. 307 crores to Rs. 185 crores, indicating a decline of around 40 percent YoY. The Board has also recommended a dividend of Rs. 6.59 per equity share of face value of Rs. 10 each, i.e. 65.9 percent per share.
About the Company
Shipping Corporation of India Limited was established by the amalgamation of Eastern Shipping Corporation and Western Shipping Corporation. Its owned fleet includes bulk carriers, crude oil tankers, product tankers, container vessels, passenger-cum-cargo vessels, LPG and offshore supply vessels.
Written by Shivani Singh
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