Shipping Corporation of India Ltd (SCI) 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

GE Shipping Co

Blackbuck

VRL Logistics

S C I

Blue Dart Expres

Transport Corp.

Gateway Distri

Mahindra Logis.

Delhivery

Container Corpn.

TVS Supply

Why is Shipping Corporation of India Ltd ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.37 times

Poor long term growth as Operating profit has grown by an annual rate -6.42% of over the last 5 years

OPERATING CF(Y) Lowest at Rs 849.51 Cr
PBT LESS OI(Q) At Rs 116.74 cr has Fallen at -25.1% (vs previous 4Q average)
INTEREST(Q) At Rs 47.38 cr has Grown at 55.24%

With ROCE of 5.9, it has a Very Attractive valuation with a 1.2 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -1.51%, its profits have fallen by -21.5%
At the current price, the company has a high dividend yield of 4.1

Despite the size of the company, domestic mutual funds hold only 0.47% 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

With its market cap of Rs 10,655 cr, it is the second biggest company in the sector (behind GE Shipping Co)and constitutes 29.26% of the entire sector

Its annual Sales of Rs 5,295.70 are 42.68% of the industry

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to S C I should be less than 10%
Overall Portfolio exposure to Transport Services should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is S C I for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

S C I

-1.53%

-0.03

45.16%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.22%

EBIT Growth (5y)

-6.42%

EBIT to Interest (avg)

4.64

Debt to EBITDA (avg)

1.97

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

0.47

Tax Ratio

3.75%

Dividend Payout Ratio

36.38%

Pledged Shares

Institutional Holding

9.07%

ROCE (avg)

7.11%

ROE (avg)

9.82%

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

1.27

EV to EBIT

20.75

EV to EBITDA

7.88

EV to Capital Employed

1.22

EV to Sales

2.41

PEG Ratio

Dividend Yield

4.09%

ROCE (Latest)

5.88%

ROE (Latest)

9.42%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

No Trend

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

4What is working for the Company

DPR(Y)

Highest at 36.38%

-12What is not working for the Company

OPERATING CF(Y)

Lowest at Rs 849.51 Cr

PBT LESS OI(Q)

At Rs 116.74 cr has Fallen at -25.1% (vs previous 4Q average

INTEREST(Q)

At Rs 47.38 cr has Grown at 55.24%

PAT(Q)

At Rs 189.16 cr has Fallen at -16.5% (vs previous 4Q average

NON-OPERATING INCOME(Q)

is 45.45 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for S C I

Dividend Payout Ratio (DPR) - Annually

Highest at 36.38% and Grown

each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for S C I

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 116.74 cr has Fallen at -25.1% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 155.76 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Operating Cash Flow - Annually

Lowest at Rs 849.51 Cr and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Interest - Quarterly

At Rs 47.38 cr has Grown at 55.24%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Profit After Tax (PAT) - Quarterly

At Rs 189.16 cr has Fallen at -16.5% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 226.57 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Non Operating Income - Quarterly

is 45.45 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT