The shares of Great Eastern Shipping Company Ltd (GE Shipping) surged 7.6% on Monday’s early trades to reach an intraday high of ₹624.50 apiece on the National Stock Exchange (NSE). Its shares were trading at ₹ 610.60 apiece, up 5.22% at 11:29 AM.
GE Shipping is a mid-cap company that operates in the Indian shipping and oil drilling services industry. It is the largest private-sector shipper in India and is mainly involved in the transportation of crude oil, petroleum, gas and dry bulk commodities.
The company posted a 244.67% increase in its consolidated profit after tax at ₹ 768.83 crores in the July to September quarter this year(Q2FY23), as compared to ₹ 223.06 crores in the corresponding quarter last year (Q2FY22). Its consolidated total income increased 63.55% to ₹ 1,447.45 crores in September 2022 from ₹ 885.01 crores in September 2021.
Further, it has declared an interim dividend of ₹ 7.20 per share and has fixed November 23, 2022, as the ‘Record Date’ for the purpose of ascertaining the shareholders eligible for receiving the dividend. The aforesaid dividend will be paid to the shareholders on or after December 06, 2022.
GE Shipping has given multibagger returns of 102.11% as per year-to-date data as its share price increased from ₹ 302.10 to ₹ 610.60 apiece. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares at the beginning of this year, the value of their holdings would have been ₹ 2.02 lakhs today!
GE Shipping has a market capitalization of ₹ 8,285 crores and a good dividend yield of 2.25%. However, it has a low return on equity of 7.99%. Its shares are trading at a price-to-equity ratio of 7.84, which is higher than the industry PE of 5.97, indicating that the stock might be overvalued.
Written by Simran Bafna
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