Shares of India’s largest private shipping company gained 4.2 percent after company contracts to buy a Kamsarmax Dry Bulk Carrier. The company has a market capitalization of Rs. 11,417 crores.
At 2:35 27th October shares of Great Eastern Shipping Company Ltd were trading at Rs. 833 per share, up by 4.2 percent from the previous closing price of Rs. 798.75 per share.
Such bullish stock price movements were observed after the company announced through a regulatory filing on Bombay stock exchange (BSE) that the company has contracted to buy a kamsarmax dry bulk carrier of about 80,919 dwt which is a medium sized cargo ship. This 2014 built vessel is expected to join the company’s fleet in Q3FY24.
The Company has a current fleet of 42 vessels, comprising 29 tankers (6 crude carriers, 19 product tankers, 4 LPG carriers) and 13 dry bulk carriers aggregating 3.33 Mn dwt. Post delivery company will have 43 vessels aggregating 3.41 Mn dwt. The proposed ship will be financed entirely from internal funds.
Looking at financial statements, company’s revenue dropped by 6.03 percent to Rs. 1,283.69 crores in Q1FY24 from Rs. 1,366 crores in Q1FY23, in the same time period net profit increased by 26.09 percent to Rs. 576.27 crores from Rs. 457.04 crores.
Talking about the profitability ratios, the company reported return on equity (ROE) of 28.1 percent and return on capital employed (ROCE) of 21.8 percent in the last financial year.
Great Eastern Shipping Company Ltd holds the distinction of being India’s largest private sector shipping service provider and boasts a strong presence in the international maritime industry. Its shipping operations are primarily categorised into two core segments: dry bulk carriers and tankers.
Written by: Vinit Israni
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