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Check Before You Invest : Transworld Shipping Lines Ltd

BSE: 520151 NSE: TRANSWORLD ISIN: INE757B01015
  |   Sector:  Transportation & Logistics   |   Industry:  Shipping

Snapshot

Q.1 Which industry/sub-sector does Transworld Shipping Lines Ltd belong to?
Transworld Shipping Lines Ltd belongs to the Transportation & Logistics sector, operating specifically within the Shipping segment.
Q.2 Is Transworld Shipping Lines Ltd a good quality company?
Transworld Shipping Lines Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Transworld Shipping Lines Ltd undervalued or overvalued?
Transworld Shipping Lines Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings - 3.46
Price to Book 0.48 0.89
Price to Sales 0.96 1.42
EV to EBITDA 11.78 5.89
Q.4 Is Transworld Shipping Lines Ltd a good buy now?
Transworld Shipping Lines 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

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Transworld Shipping Lines Ltd?
Transworld Shipping Lines Ltd revenue growth is 58% for FY-2025, which is above its 5-year CAGR of -6.13%, indicating faster growth.

Q.2 Gross Profit margin of Transworld Shipping Lines Ltd?
Transworld Shipping Lines Ltd Gross profit margin which is the profit after deduction of direct costs, is 29.7% for FY-2025, which is in line with its 5-year median of 29.7%, indicating stable margins.

Q.3 Operating Profit Margin of Transworld Shipping Lines Ltd?
Transworld Shipping Lines Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 35.61% for FY-2025, which is in line with its 5-year median of 35.61% indicating stable margins.

Q.4 Net Profit Margin of Transworld Shipping Lines Ltd?
Transworld Shipping Lines Ltd Net Profit Margin is 7.61% for FY-2025, is in line with its 5-year median of 7.61%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 29.7 29.7
Operating Profit Margin (%) 35.61 35.61
Net Profit Margin (%) 7.61 7.61

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Transworld Shipping Lines Ltd?
Transworld Shipping Lines Ltd Return on Asset is 2.78%, which is below its 5-year historical median of 5.65%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Transworld Shipping Lines Ltd?
Transworld Shipping Lines Ltd Return on capital employed is 5.81% for FY-2025, which is below its 5-year historical median of 9.37%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Transworld Shipping Lines Ltd?
Transworld Shipping Lines Ltd Return on equity is 4.33% for FY-2025, which is below its 5-year historical median of 10.47%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Transworld Shipping Lines Ltd?
Transworld Shipping Lines Ltd Cash conversion cycle is -31 days, below its 5-year historical median of -13 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.36 0.43
ROE (%) 4.33 10.47
ROCE (%) 5.81 9.37
Cash Conversion Cycle -31 days -13 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Transworld Shipping Lines Ltd?
Transworld Shipping Lines Ltd Debt-to-Equity ratio is 0.41, which is above the industry average of 0.30, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Transworld Shipping Lines Ltd?
Transworld Shipping Lines Ltd Debt to cash flow from operations is 1.95, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Transworld Shipping Lines Ltd?

Q.1 Promoter shareholding and pledge status of Transworld Shipping Lines Ltd?
Promoters hold 70.44% of the Transworld Shipping Lines Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Transworld Shipping Lines Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Transworld Shipping Lines Ltd vs industry peers?
Transworld Shipping Lines Ltd revenue CAGR is -6.13%, compared to the industry median CAGR of 0%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 58 -
Gross Profit Growth (%) 315.6 11.7
Operating Profit Growth (%) 550 9.1
Net Profit Growth (%) 0 20.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.36 0.43
ROE (%) 4.33 8.41
ROCE (%) 5.81 9.37
Cash Conversion Cycle (days) -31.21 -

Valuation & price assessment

Q.1 Stock return of Transworld Shipping Lines Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -5.3% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-5.3% 7% -20.3% -48.9%
Q.2 Valuation ratios of Transworld Shipping Lines Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 3.46, indicating that the stock is trading below its historical average valuation.
Q.3 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 - 3.46 16.36
Price to Book 0.48 0.89 1.37
Price to Sales 0.96 1.42 2.56
EV to EBITDA 11.78 5.89 13.27

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