The shares of the largest shipping company gained up to 12 percent after the company’s net profit and revenue increased by 95 percent and 26 percent YoY, respectively in Q1FY25.
With a market capitalization of Rs 13,228.69 crore, the shares of Shipping Corporation of India Ltd were trading at Rs 284.00 per share, increasing around 9.15 percent as compared to the previous closing price of Rs 257.35 apiece.
Reason for Rise:-
Today, the company shares have seen bullish movement after Shipping Corporation of India Ltd’s revenue increased 7 percent on Quarter on Quarter basis from Rs 1,412 crore in Q4FY24 to Rs 1,514 crore Q1FY25, if look into the on Year on Year basis revenue magnified significantly by 26 percent from Rs 1,200 crore Q1FY24 to Rs 1,514 crore Q1FY25.
Shipping Corporation of India Ltd’s net profit decreased by 1.7 percent on a quarter-on-quarter basis from Rs. 292 crores in Q4FY24 to Rs 287 in Q1FY25. Further, on a year-on-year basis also net profit magnified drastically by 95 percent from Rs 147 crores in Q1FY24 to Rs. 287 crores in Q1FY25.
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Remarkable return:-
The shares have given a return of 32.19 percent in the period of six months and a multi-bagger of 168.51 percent. If an individual invested Rs 1 lakh a year ago it will be worth it now Rs 2.68 lakh.
Clients & Fleet:-
The company has a strong customer base including IOC, BPCL, HPCL, MRPL, CPCL, ONGC, Reliance, Nayara Energy Cairn Energy, Shell, BP, Chevron, Koch, Marubeni, etc.
The company has a total fleet of 59 vessels including 32 tankers, 15 bulk carriers, 2 liners, and 10 offshore supplies with a total of 5,311,210 DWT.
Ratio analysis:-
Examining the company’s crucial ratio, return on equity declined from 12.60 percent in FY22-23 to 9.00 percent in FY23-24, while during the same time frame return on capital employed also declined from 10.59 percent to 8.15 percent. In contrast, the net profit margin (NPM) stands at 12.11 percent in fiscal year 23-24.
Company Profile:-
Shipping Corporation of India Limited is an Indian shipping corporation. The Company provides transportation services for both products and humans. The Company’s segments include Liner, Bulk Carrier, Tanker, and Technical & Offshore. The Liner category comprises both break-bulk and container shipping.
Written by:- Abhishek Singh
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