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INVESTMENT INSIGHTS

Check Before You Invest : Essar Shipping Ltd

BSE: 533704 NSE: ESSARSHPNG ISIN: INE122M01019
  |   Sector:  Transportation & Logistics   |   Industry:  Shipping

Snapshot

Q.1 Which industry/sub-sector does Essar Shipping Ltd belong to?
Essar Shipping Ltd belongs to the Transportation & Logistics sector, operating specifically within the Shipping segment.
Q.2 Is Essar Shipping Ltd a good quality company?
Essar Shipping Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.
Q.3 Is Essar Shipping Ltd undervalued or overvalued?
Essar Shipping Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Essar Shipping Ltd a good buy now?
Essar Shipping Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Essar Shipping Ltd?
Essar Shipping Ltd revenue growth is 30.1% for FY-2025, which is above its 5-year CAGR of -47.99%, indicating faster growth.
Q.2 Return on capital employed (ROCE) of Essar Shipping Ltd?
Essar Shipping Ltd Return on capital employed is 414.8% for FY-2025, which is above its 5-year historical median of -17.9%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.
Q.3 Return on Asset of Essar Shipping Ltd?
Essar Shipping Ltd Return on Asset is 193.21%, which is above its 5-year historical median of -19.44%, indicating improved asset utilization efficiency.
Q.4 Cash conversion cycle of Essar Shipping Ltd?
Essar Shipping Ltd Cash conversion cycle is -532 days, in line with its 5-year historical median of -532 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Q.5 Gross Profit margin of Essar Shipping Ltd?
Essar Shipping Ltd Gross profit margin which is the profit after deduction of direct costs, is 1052.8% for FY-2025, which is above its 5-year median of -111.8%, indicating increasing margins.
Q.6 Operating Profit Margin of Essar Shipping Ltd?
Essar Shipping Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -3.12% for FY-2025, which is in line with its 5-year median of -3.12% indicating stable margins.
Q.7 Net Profit Margin of Essar Shipping Ltd?
Essar Shipping Ltd Net Profit Margin is 1810.34% for FY-2025, is above with its 5-year median of -178.51%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin 1052.8 -111.8
Operating Profit Margin -3.12 -3.12
Net Profit Margin 1810.34 -178.51
Q.8 Debt to Equity ratio of Essar Shipping Ltd?
Essar Shipping Ltd Debt-to-Equity ratio is -0.97, which is lower with the industry average of 0.31, indicating lower debt levels in the industry.
Q.9 Debt to cash flow from operations of Essar Shipping Ltd?
Essar Shipping Ltd Debt to cash flow from operations is -23.68, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Essar Shipping Ltd?
Promoters hold 73.75% of the Essar Shipping Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Essar Shipping Ltd vs industry peers?
Essar Shipping Ltd revenue CAGR is -47.99%, compared to the industry median CAGR of 5.09%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth 30.1 5.1
Gross Profit Growth 0 11.7
Operating Profit Growth 0 8.4
Net Profit Growth 0 19.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover 0.11 0.43
ROE - 9.44
ROCE 414.8 9.37
Cash Conversion Cycle (days) -531.82 -4

Valuation & price assessment

Q.1 Stock return of Essar Shipping Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 0.8% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price
CAGR		 0.8% 23.9% 48.3% -8.7%
Q.3 Valuation ratios of Essar Shipping Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median		 5-year
Industry Median
Price to Earnings 1.44 1.28 16.32
Price to Book -0.59 -0.35 1.38
Price to Sales 59.1 30.48 2.55
EV to EBITDA 15.86 24.89 13.25

Check more companies

1. GE Shipping
2. Shipping Corpn.
3. Shreeji Ship.Global
4. Seamec
5. Dredging Corp
6. Ship.Corp.(I) Land
7. ABS Marine Services
8. Essar Shipping
9. Transworld Shipping
10. Sadhav Shipping

Check trending companies

1. Godfrey Phillips India Ltd.
2. Aadhar Housing Finance Ltd.
3. Muthoot Finance Ltd.
4. Siemens Ltd.
5. Tata Elxsi Ltd.
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