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Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Essar Shipping Ltd

About the Company - Essar Shipping Ltd

Essar Shipping Ltd. is a Public Limited Listed company incorporated on 16/04/2010 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L61200GJ2010PLC060285 and registration number is 060285. Currently company belongs to the Industry of Shipping. Company’s Total Operating Revenue is Rs. 140.03 Cr. and Equity Capital is Rs. 206.98 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
ShippingEBTSL Premises, ER-2 Building (Admin Building), Devbhumi Dwarka Dist. Gujarat 361305esl.secretarial@essar.co.in
http://www.essar.com
Management
NamePosition Held
Mr. R SureshChairman & Ind.Dire (Non-Exe)
Mr. Rajesh DesaiExecutive Director
Ms. Raichel MathewNon Executive Director
Ms. Raji ChandrashekarInd. Non-Executive Director
Mr. Sunil ModakInd. Non-Executive Director
Mr. R JayakumarInd. Non-Executive Director

Basic Stock Data of Essar Shipping Ltd

Last Updated: May 23, 2024, 1:29 pm

Market Cap 630 Cr.
Current Price 30.5
High / Low39.0/8.51
Stock P/E
Book Value 130
Dividend Yield0.00 %
ROCE%
ROE%
Face Value 10.0
PEG Ratio0.00

Competitors of Essar Shipping Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Shreyas Shipping & Logistics Ltd 661 Cr. 301506/230 3490.50 %0.80 %6.40 % 10.0
Great Eastern Shipping Company Ltd (GESHIP) 14,357 Cr. 1,0061,129/6725.50 8682.86 %20.2 %23.1 % 10.0
SEAMEC Ltd 2,842 Cr. 1,1181,240/58645.3 3150.09 %3.35 %3.72 % 10.0
Shipping Corporation of India Ltd 12,227 Cr. 262291/94.618.0 1620.17 %8.18 %9.40 % 10.0
Chowgule Steamships Ltd 108 Cr. 29.836.5/13.1309 15.70.00 %3.05 %% 10.0
Industry Average6,039.00 Cr543.3675.56341.940.72%7.12%8.52%10.00

Essar Shipping Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales102911471452215161714141143
Expenses131104126932620698582519
Operating Profit-29-132052-4-597793-21-17
OPM %-29%-14%14%36%-21%-33%60%44%48%62%23%-492%-641%
Other Income117-1746610332355211,3613284642
Interest1111361101017471687532-44111016
Depreciation4344472419151213134111111
Profit before tax-182-177-311-76232-16-601,32337626-37-41
Tax %-0%-0%-0%-1%0%0%0%28%-1%-0%0%2%0%
Net Profit-182-177-31115-8226-16-401,34336326-36-41
EPS in Rs-8.79-8.65-15.050.74-0.3810.89-0.76-1.9664.8917.561.26-1.74-2.12

Last Updated: May 11, 2024, 3:59 pm

Essar Shipping Ltd Quarterly Chart

Essar Shipping Ltd Profit & Loss

Last Updated: May 27, 2024, 5:22 am

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,8023,2091,8591,9111,7202,1941,2081,3091,3444723286131
Expenses2,0952,4331,3081,6841,4411,8159629771,0844422652858
Operating Profit707776550227279379246332261306332-26
OPM %25%24%30%12%16%17%20%25%19%6%19%53%-84%
Other Income4639128243199-69-1,201-3,430-1,342133191,764380
Interest329366399477542467387396433489356132-7
Depreciation3633694784244643903042821721741064136
Profit before tax6080-199-432-528-547-1,646-3,776-1,686-620-811,624324
Tax %39%55%-23%-6%-4%-7%-0%-0%-0%-0%-0%-2%
Net Profit3736-244-459-550-583-1,685-3,771-1,687-621-781,650312
EPS in Rs1.791.74-11.88-22.36-26.58-28.19-80.44-182.40-81.24-29.97-3.7979.7314.96
Dividend Payout %-0%-0%-0%-0%-0%-0%-0%-0%-0%-0%-0%-0%

Essar Shipping Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-2.70%-777.78%-88.11%-19.83%-6.00%-189.02%-123.80%55.26%63.19%87.44%2215.38%
Change in YoY Net Profit Growth (%)0.00%-775.08%689.66%68.29%13.83%-183.02%65.22%179.06%7.93%24.25%2127.95%

Essar Shipping Ltd Growth

Compounded Sales Growth
10 Years:-33%
5 Years:-45%
3 Years:-64%
TTM:-49%
Compounded Profit Growth
10 Years:%
5 Years:15%
3 Years:25%
TTM:95%
Stock Price CAGR
10 Years:3%
5 Years:24%
3 Years:49%
1 Year:222%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Last Updated: May 23, 2024, 1:29 pm

Essar Shipping Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital205205205205207207207207207207207207207
Reserves5,2906,5636,8846,6753,1262,4281,163-2,117-4,428-5,020-5,121-2,949-2,902
Borrowings5,6385,2965,6255,1425,3245,6134,6284,7714,6414,5993,9122,7042,642
Other Liabilities8861,3601,3291,4301,5061,2481,6471,7011,9252,2982,1711,0851,014
Total Liabilities12,01913,42414,04313,45210,1639,4967,6454,5632,3452,0841,1701,047961
Fixed Assets8,0939,3809,8179,8146,4495,8355,2533,1491,0038841125837
CWIP1,7911,73692787913778111116000
Investments0063630370420640380
Other Assets2,1352,3084,0713,4973,6353,4872,3141,3611,3321,1781,018951925
Total Assets12,01913,42414,04313,45210,1639,4967,6454,5632,3452,0841,1701,047961

Essar Shipping Ltd Reserves and Borrowings Chart

Essar Shipping Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 6141,20539655934527448715721097140514
Cash from Investing Activity -364-9823937926137196475-22478463
Cash from Financing Activity -283-1,075-606-961-374-285-1,188-236-263-86-627-969
Net Cash Flow-343229-23-2218-1522-12-97

Essar Shipping Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days794567587120304320232779
Inventory Days
Days Payable
Cash Conversion Cycle794567587120304320232779
Working Capital Days5723289-10657-277-496-835-831-691-1,020-275
ROCE %4%4%2%0%0%1%0%2%13%-30%

Essar Shipping Ltd Financial Efficiency Indicators Chart

Essar Shipping Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters74.37%74.37%74.37%74.37%74.37%74.37%74.37%74.37%74.37%74.37%74.37%73.75%
FIIs9.02%9.02%9.02%8.89%6.77%0.12%0.12%0.00%0.00%0.00%0.00%0.00%
DIIs0.07%0.05%0.05%0.02%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.02%
Public16.54%16.56%16.56%16.72%18.83%25.48%25.48%25.59%25.61%25.60%25.60%26.22%
No. of Shareholders85,60585,80287,98089,09192,1501,04,1371,04,8021,06,4471,05,6891,05,3661,05,3031,02,708

Essar Shipping Ltd Shareholding Pattern Chart

No. of Essar Shipping Ltd Shareholders

This stock is not held by any mutual fund

Essar Shipping Ltd ROCE Trend

Essar Shipping Ltd EPS Trend

Essar Shipping Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)79.74-3.77-29.98-81.50-182.21
Diluted EPS (Rs.)79.74-3.77-29.98-81.50-182.21
Cash EPS (Rs.)81.721.20-21.59-73.18-168.86
Book Value[Excl.RevalReserv]/Share (Rs.)-126.76-224.46-219.79-191.32-79.61
Book Value[Incl.RevalReserv]/Share (Rs.)-126.76-224.46-219.79-191.32-79.61
Revenue From Operations / Share (Rs.)2.9315.8622.8564.9463.25
PBDIT / Share (Rs.)6.5813.903.1819.8418.80
PBIT / Share (Rs.)4.598.79-5.2111.525.15
PBT / Share (Rs.)78.45-3.90-29.95-81.44-182.44
Net Profit / Share (Rs.)79.73-3.91-29.98-81.50-182.51
NP After MI And SOA / Share (Rs.)79.73-3.79-29.97-81.24-182.40
PBDIT Margin (%)224.4187.6513.9330.5529.71
PBIT Margin (%)156.6055.39-22.7917.748.14
PBT Margin (%)2676.36-24.59-131.05-125.41-288.43
Net Profit Margin (%)2719.97-24.67-131.18-125.49-288.54
NP After MI And SOA Margin (%)2719.97-23.90-131.15-125.09-288.37
Return on Networth / Equity (%)-60.180.000.000.000.00
Return on Capital Employeed (%)-4.26-6.123.84-12.0141.55
Return On Assets (%)157.68-6.70-29.76-71.69-82.74
Long Term Debt / Equity (X)-0.14-0.34-0.36-0.46-0.99
Total Debt / Equity (X)-0.98-0.79-0.36-0.46-0.99
Asset Turnover Ratio (%)0.050.110.080.170.08
Current Ratio (X)0.280.240.240.300.30
Quick Ratio (X)0.280.240.230.290.30
Interest Coverage Ratio (X)1.030.800.130.940.98
Interest Coverage Ratio (Post Tax) (X)0.920.50-0.220.540.26
Enterprise Value (Cr.)2962.794307.372141.862304.092357.85
EV / Net Operating Revenue (X)48.8313.124.531.711.80
EV / EBITDA (X)21.7614.9732.495.616.06
MarketCap / Net Operating Revenue (X)2.730.470.340.080.16
Price / BV (X)-0.06-0.03-0.03-0.02-0.11
Price / Net Operating Revenue (X)2.730.470.340.080.16
EarningsYield9.95-0.50-3.82-15.02-17.44

Essar Shipping Ltd Profitability Ratios (%)

Essar Shipping Ltd Liquidity Ratios

Essar Shipping Ltd Liquidity Ratios (%)

Essar Shipping Ltd Interest Coverage Ratios (X)

Essar Shipping Ltd Valuation Ratios

Fair Value

Fair Value: ₹298.35

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 878.20% compared to the current price ₹30.5

Default values used*: Deafault value of 15 for Stock P/E is used, Deafault value of 15% for ROE is used

Intrinsic Value: ₹745.18

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 2,343.20% compared to the current price ₹30.5

Default values used*: Deafault value of 15 for Stock P/E is used, Deafault value of 15% for ROE is used

Last 5 Year EPS CAGR: 149.77%

*Investments are subject to market risks

Strength and Weakness of Essar Shipping Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of -257.17, which is a positive sign.
  1. The stock has a low average ROCE of -0.33%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 46.83, which may not be favorable.
  3. The company has higher borrowings (4,656.54) compared to reserves (737.85), which may suggest financial risk.
  4. The company has not shown consistent growth in sales (69.62) and profit (-149.77).

Should I Buy Essar Shipping Ltd Share Now?

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Essar Shipping Ltd:
    1. Net Profit Margin: 2719.97%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: -4.26% (Industry Average ROCE: 7.12%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: -60.18% (Industry Average ROE: 8.52%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 0.92
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.28
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✓ Stock P/E: (Industry average Stock P/E: 75.9)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. ✓ Total Debt / Equity: -0.98
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

FAQ

What is the latest fair value of Essar Shipping Ltd?

The latest fair value of Essar Shipping Ltd is ₹298.35.

What is the Market Cap of Essar Shipping Ltd?

The Market Cap of Essar Shipping Ltd is 630 Cr..

What is the current Stock Price of Essar Shipping Ltd as on 30 May 2024?

The current stock price of Essar Shipping Ltd as on 30 May 2024 is ₹30.5.

What is the High / Low of Essar Shipping Ltd stocks in FY 2024?

In FY 2024, the High / Low of Essar Shipping Ltd stocks is 39.0/8.51.

What is the Stock P/E of Essar Shipping Ltd?

The Stock P/E of Essar Shipping Ltd is .

What is the Book Value of Essar Shipping Ltd?

The Book Value of Essar Shipping Ltd is 130.

What is the Dividend Yield of Essar Shipping Ltd?

The Dividend Yield of Essar Shipping Ltd is 0.00 %.

What is the ROCE of Essar Shipping Ltd?

The ROCE of Essar Shipping Ltd is %.

What is the ROE of Essar Shipping Ltd?

The ROE of Essar Shipping Ltd is %.

What is the Face Value of Essar Shipping Ltd?

The Face Value of Essar Shipping Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Essar Shipping Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE