Since July, shares of Great Eastern Shipping Company, the country's largest private-sector shipping company, have risen significantly from ₹365.15 apiece to the current level of ₹692.85, representing a return of nearly 90 percent.
The stock has advanced 118 percent in the last one year as against a 5.85 percent rise in the benchmark Nifty50.
The stock's upward movement comes on the back of positive business outlook. Following the release of September quarter results, the stock has risen 30 percent so far this month.
The stock performed better than all its peers in the last one year. Shipping Corporation of India, Shreyas Shipping & Logistics, and Essar Shipping have all given returns of -5.67 percent, 23.73 percent, and 6.04 percent, respectively.
During Monday's intraday trade, shares of GESC reached a new 52-week high of ₹709.9, surpassing its previous high of ₹672. At the prevailing price, the stock is trading 161.45 percent above its 52-week low of ₹265 seen on December 20, 2021.
YTD, the stock has risen from around Rs. 298.90 to the current trading price of Rs. 692.85, representing a 131.79 percent rise. At the current market price, the stock traded at 11.20 times of its earnings, which is low when compared to the industry P/E of 31.47x.
On the technical charts, the stock is trading 56.3 percent above its 200-day moving average and 24.54 percent higher than its 50-day moving average.
The company recorded its best performance in the September quarter. It posted more than a three-fold jump in its consolidated net profit to ₹768.8 crore, which is the highest to date. In the same quarter of the last fiscal year, the company had reported a consolidated net profit of ₹223 crore.
The revenue from operations increased by 78.42 percent to Rs.1,700 crore during the quarter, compared to Rs. 952.8 crore in the corresponding quarter of the previous fiscal.
GESC posted an operating profit of ₹793 crore for the September-ending quarter, an 86.58 percent growth YoY. EBITDA margin stands at 54.79 percent, up 676 basis points (bps) from Q2FY22.
The company also announced a second interim dividend of ₹7.20 per equity share for FY23. In the past 12 months, the company has declared an equity dividend amounting to ₹18.00 per share.
On the fundamental side, the gross debt of the company fell to 0.53x in Q2 FY23 from 0.66x in Q2 FY22 due to strong operating cash flows. The company prepaid $45 million of ECB debt in H1FY23.
The earnings per share improved to ₹51.21 during the quarter from ₹14.02, and the cash profit per share came in at ₹63.89 in the June-September quarter compared to ₹27.07 in the year-ago quarter.
GESC is a major player in the Indian shipping industry. The company is India's largest private-sector shipping service provider and enjoys a formidable presence in the international maritime industry. The company has two main businesses, which include shipping and offshore.
The shipping business is involved in the transportation of crude oil, petroleum products, gas, and dry bulk commodities.
Two analysts polled by MintGenie on average have a strong 'buy' call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.