Current Rating and Its Significance
The 'Hold' rating assigned to Shipping Corporation of India Ltd indicates a cautious stance for investors. It suggests that while the stock is not currently a strong buy, it is also not a sell candidate. Investors are advised to maintain their existing positions but to monitor developments closely. This rating reflects a balance between the company’s strengths and challenges as assessed through multiple parameters.
Quality Assessment
As of 09 January 2026, the company’s quality grade is considered average. Shipping Corporation of India Ltd demonstrates a strong ability to service its debt, with a low Debt to EBITDA ratio of 1.37 times, signalling prudent financial management and manageable leverage. However, the company’s long-term growth prospects appear subdued, with operating profit declining at an annual rate of -6.42% over the past five years. This negative growth trend tempers the overall quality assessment, indicating challenges in expanding profitability despite stable operations.
Valuation Perspective
The valuation grade for the stock is very attractive. Currently, the company trades at a discount relative to its peers, with an Enterprise Value to Capital Employed ratio of just 1.2. This suggests that the market is pricing the stock conservatively, potentially offering value to investors. Additionally, the company boasts a high dividend yield of 4.4%, which is appealing for income-focused investors. Despite a profit decline of -21.5% over the past year, the stock has delivered a positive return of 5.11%, reflecting some resilience in market sentiment.
Financial Trend Analysis
The financial trend for Shipping Corporation of India Ltd is currently negative. The latest data as of 09 January 2026 shows operating cash flow at Rs 849.51 crores, which is the lowest in recent periods. Profit before tax excluding other income for the latest quarter stands at Rs 116.74 crores, having fallen by 25.1% compared to the previous four-quarter average. Meanwhile, interest expenses have increased sharply by 55.24% to Rs 47.38 crores in the latest quarter, exerting additional pressure on profitability. These factors contribute to a cautious outlook on the company’s near-term financial trajectory.
Technical Indicators
From a technical standpoint, the stock exhibits a mildly bullish trend. Despite some recent volatility, the share price has shown resilience, with a one-year return of 6.26% and a modest gain of 0.48% on the latest trading day. However, shorter-term returns have been mixed, including a 6.83% decline over the past week and a 5.50% drop year-to-date. These fluctuations suggest that while there is some positive momentum, investors should remain vigilant for potential volatility.
Market Position and Shareholding
Shipping Corporation of India Ltd holds a significant position in the transport services sector, with a market capitalisation of approximately Rs 10,681 crores, making it the second largest company in its sector after GE Shipping Co. It accounts for 29.29% of the sector’s market cap and generates annual sales of Rs 5,295.70 crores, representing 43.28% of the industry’s total. Despite its size, domestic mutual funds hold a relatively small stake of 0.47%, which may indicate some reservations about the stock’s valuation or business outlook among institutional investors.
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Implications for Investors
The 'Hold' rating on Shipping Corporation of India Ltd advises investors to maintain their current holdings without initiating new positions or liquidating existing ones. The company’s very attractive valuation and dividend yield provide some incentive for investors seeking income and value. However, the negative financial trends and average quality metrics suggest caution, as profitability pressures and rising interest costs may weigh on returns in the near term.
Investors should closely monitor upcoming quarterly results and sector developments, particularly given the company’s sizeable role in the transport services industry. The modest technical bullishness indicates potential for price recovery, but volatility remains a risk. Overall, the rating reflects a balanced view that acknowledges both the stock’s value proposition and its operational challenges.
Summary
In summary, Shipping Corporation of India Ltd’s current 'Hold' rating by MarketsMOJO, updated on 08 Nov 2025, is supported by a combination of average quality, very attractive valuation, negative financial trends, and mildly bullish technicals as of 09 January 2026. This rating suggests a wait-and-watch approach for investors, recognising the company’s strengths while remaining mindful of its recent performance headwinds.
Key Metrics at a Glance (As of 09 January 2026)
- Mojo Score: 52.0 (Hold)
- Market Capitalisation: Rs 10,681 crores
- Debt to EBITDA Ratio: 1.37 times
- Operating Profit Growth (5-year CAGR): -6.42%
- Operating Cash Flow (Annual): Rs 849.51 crores
- Profit Before Tax (Quarterly): Rs 116.74 crores (-25.1% vs 4Q average)
- Interest Expense (Quarterly): Rs 47.38 crores (+55.24%)
- Return on Capital Employed (ROCE): 5.9%
- Enterprise Value to Capital Employed: 1.2
- Dividend Yield: 4.4%
- Stock Returns: 1D +0.48%, 1Y +6.26%, YTD -5.50%
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