Essar Shipping Ltd (ESSARSHPNG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Tara Chand Infra

Globe Intl. Car.

Ritco Logistics

S J Logistics (I

Sical Logistics

Essar Shipping

TransIndia Real

Snowman Logistic

Glottis

Tejas Cargo

ABS Marine

Why is Essar Shipping Ltd ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Low ability to service debt as the company has a high Debt to EBITDA ratio of 9.32 times
The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward
PAT(Latest six months) At Rs 6.21 cr has Grown at -85.81%
CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 5.26 cr
DEBTORS TURNOVER RATIO(HY) Lowest at -9.93 times

Risky - Negative EBITDA

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -20.77%, its profits have risen by 172.6% ; the PEG ratio of the company is 0.1

Despite the size of the company, domestic mutual funds hold only 0.03% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 1.74% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -20.77% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Transport Services)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Essar Shipping for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Essar Shipping

-20.46%

-0.36

57.59%

Sensex

4.68%

0.38

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-168.86%

EBIT Growth (5y)

-217.58%

EBIT to Interest (avg)

-0.16

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.69

Sales to Capital Employed (avg)

-0.57

Tax Ratio

0.89%

Dividend Payout Ratio

Pledged Shares

14.02%

Institutional Holding

0.03%

ROCE (avg)

22.74%

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

-0.25

EV to EBIT

-47.17

EV to EBITDA

-47.95

EV to Capital Employed

-3.05

EV to Sales

-16.11

PEG Ratio

0.07

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

Negative BV

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

PAT(9M)

Higher at Rs 13.70 Cr

PBDIT(Q)

Highest at Rs -3.18 cr.

-12What is not working for the Company

PAT(Latest six months)

At Rs 6.21 cr has Grown at -85.81%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 5.26 cr

DEBTORS TURNOVER RATIO(HY)

Lowest at -9.93 times

EPS(Q)

Lowest at Rs -0.76

Loading Valuation Snapshot...

Here's what is working for Essar Shipping

Operating Profit (PBDIT) - Quarterly

Highest at Rs -3.18 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Here's what is not working for Essar Shipping

Profit After Tax (PAT) - Quarterly

At Rs -21.15 cr has Fallen at -159.5% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 35.53 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs -0.76

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 5.26 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio- Half Yearly

Lowest at -9.93 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio