Great Eastern Shipping Company Downgraded to 'Sell' by MarketsMOJO Due to Flat Results and Bearish Technical Outlook

Great Eastern Shipping Company, a midcap shipping company, has recently been downgraded to a 'Sell' by MarketsMOJO on November 18, 2024. This downgrade is based on the company's flat results in the September quarter, with a decrease of 28.0% in PBT less OI and 19.2% in PAT. Additionally, the non-operating income only accounts for 36.96% of the PBT, indicating a decline in overall profitability.
Technically, the stock is currently in a mildly bearish range, with a deteriorating trend since November 18, 2024, resulting in a -3.79% return. The Bollinger Band and KST technical factors also suggest a bearish outlook for the stock.

However, the company has a low debt to equity ratio and a healthy long-term growth rate, with an annual operating profit growth of 48.61%. Its ROE of 21 also indicates a fair valuation with a price to book value of 1.1. Moreover, the stock is currently trading at a fair value compared to its historical valuations.

In the past year, the stock has generated a return of 36.63%, outperforming the BSE 500 index. Its profits have also increased by 12.3%, resulting in a PEG ratio of 0.4. Additionally, the company has a high institutional holding of 40.33%, indicating their confidence in the company's fundamentals.

Great Eastern Shipping Company is the largest company in the shipping sector with a market cap of Rs 15,841 crore, constituting 44.04% of the entire sector. Its annual sales of Rs 5,605.09 crore also account for 41.44% of the industry. With consistent returns over the last 3 years, the company has proven to be a strong player in the shipping industry.