Great Eastern Shipping Company Ltd (GESHIP) has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.
Growth
Compounded Sales Growth
10 Years:
5%
5 Years:
8%
3 Years:
16%
TTM:
-2%
Compounded Profit Growth
10 Years:
16%
5 Years:
194%
3 Years:
42%
TTM:
11%
Stock Price CAGR
10 Years:
12%
5 Years:
34%
3 Years:
51%
1 Year:
47%
Return on Equity
10 Years:
11%
5 Years:
15%
3 Years:
19%
Last Year:
21%
Last Updated: Unknown
Balance Sheet
Last Updated: Unknown
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Equity Capital
152
151
151
151
151
151
151
147
147
143
143
143
Reserves
6,189
6,622
7,280
6,413
7,073
6,777
6,659
6,649
7,557
7,909
10,133
12,255
Borrowings
6,739
6,119
6,540
5,759
6,816
6,213
5,999
5,295
5,047
4,655
3,649
3,048
Other Liabilities
1,368
1,484
1,565
1,610
1,363
1,523
1,562
1,742
1,394
1,262
1,284
1,362
Total Liabilities
14,449
14,377
15,535
13,933
15,402
14,664
14,370
13,833
14,145
13,969
15,209
16,808
Fixed Assets
9,684
9,842
10,888
8,925
10,304
9,809
9,617
9,123
9,042
8,877
8,450
8,329
CWIP
20
358
227
328
22
13
14
123
24
24
35
59
Investments
2,026
1,142
1,250
912
875
856
601
963
1,350
1,157
1,510
1,970
Other Assets
2,719
3,035
3,170
3,768
4,201
3,986
4,138
3,624
3,729
3,910
5,215
6,450
Total Assets
14,449
14,377
15,535
13,933
15,402
14,664
14,370
13,833
14,145
13,969
15,209
16,808
Reserves and Borrowings Chart
Cash Flow
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Cash from Operating ActivityÂ
1,256
1,358
1,445
2,151
1,522
969
1,096
1,481
1,534
1,323
2,975
2,808
Cash from Investing ActivityÂ
-409
-348
-725
-440
-1,548
-412
429
622
-882
-337
39
-868
Cash from Financing ActivityÂ
-442
-1,697
-228
-1,677
713
-1,158
-1,020
-1,872
-505
-1,189
-1,893
-1,330
Net Cash Flow
405
-688
491
34
687
-602
505
230
147
-203
1,120
610
Free Cash Flow
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Free Cash Flow
959.00
-5.00
-5.00
-4.00
-5.00
-5.00
-4.00
-4.00
-4.00
-3.00
0.00
0.00
Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)
Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.
Fair Value of Great Eastern Shipping Company Ltd (GESHIP) as of October 11, 2024 is: ₹1,189.23
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.
As of October 11, 2024, Great Eastern Shipping Company Ltd (GESHIP) is Overvalued by 6.51% compared to the current share price ₹1,272.00
Intrinsic Value of Great Eastern Shipping Company Ltd (GESHIP) as of October 11, 2024 is: ₹1,500.14
Calculation basis:
Intrinsic 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 intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.
As of October 11, 2024, Great Eastern Shipping Company Ltd (GESHIP) is Undervalued by 17.94% compared to the current share price ₹1,272.00
Last 5 Year EPS CAGR: 26.14%
*Investments are subject to market risks
Strength and Weakness
Strength
Weakness
The stock has a low average Working Capital Days of -104.92, which is a positive sign.
The company has higher reserves (7,626.33 cr) compared to borrowings (5,489.92 cr), indicating strong financial stability.
The company has shown consistent growth in sales (3.46 cr) and profit (371.00 cr) over the years.
The stock has a low average ROCE of 9.00%, which may not be favorable.
The stock has a high average Cash Conversion Cycle of 33.92, which may not be favorable.
Stock Analysis
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 Great Eastern Shipping Company Ltd (GESHIP):
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.
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.
ROE%: 21.08% (Industry Average ROE: 13.71%)
ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
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.
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.
Stock P/E: 6.38 (Industry average Stock P/E: 76.72)
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.
Total Debt / Equity: 0.24
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:
About the Company - Qualitative Analysis
Great Eastern Shipping Company Ltd. is a Public Limited Listed company incorporated on 03/08/1948 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L35110MH1948PLC006472 and registration number is 006472. Currently Company is involved in the business activities of Sea and coastal freight water transport. Company’s Total Operating Revenue is Rs. 2832.03 Cr. and Equity Capital is Rs. 142.77 Cr. for the Year ended 31/03/2022.
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 Great Eastern Shipping Company Ltd (GESHIP). 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
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