NSEI:GESHIP

Stock Analysis Report

Great Eastern Shipping

Executive Summary

The Great Eastern Shipping Company Limited, through its subsidiaries, engages in the shipping and offshore businesses in India and internationally.

Snowflake

Fundamentals

Moderate growth potential second-rate dividend payer.

Share Price & News

How has Great Eastern Shipping's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.8%

GESHIP

5.6%

IN Oil and Gas

3.8%

IN Market


1 Year Return

3.8%

GESHIP

14.5%

IN Oil and Gas

6.0%

IN Market

Return vs Industry: GESHIP underperformed the Indian Oil and Gas industry which returned 14.5% over the past year.

Return vs Market: GESHIP underperformed the Indian Market which returned 6% over the past year.


Shareholder returns

GESHIPIndustryMarket
7 Day-0.8%5.6%3.8%
30 Day8.9%11.5%2.9%
90 Day15.9%7.5%2.9%
1 Year6.2%3.8%17.9%14.5%8.2%6.0%
3 Year-18.6%-24.4%51.4%35.8%23.0%16.7%
5 Year-16.9%-27.6%70.2%43.3%43.6%30.0%

Price Volatility Vs. Market

How volatile is Great Eastern Shipping's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Great Eastern Shipping undervalued compared to its fair value and its price relative to the market?

31.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GESHIP (₹289.95) is trading below our estimate of fair value (₹425.7)

Significantly Below Fair Value: GESHIP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GESHIP is poor value based on its PE Ratio (25.8x) compared to the Oil and Gas industry average (11.1x).

PE vs Market: GESHIP is poor value based on its PE Ratio (25.8x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GESHIP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GESHIP is good value based on its PB Ratio (0.6x) compared to the IN Oil and Gas industry average (1.2x).


Next Steps

Future Growth

How is Great Eastern Shipping forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

28.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GESHIP's forecast earnings growth (28.4% per year) is above the savings rate (7.6%).

Earnings vs Market: GESHIP's earnings (28.4% per year) are forecast to grow faster than the Indian market (18% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GESHIP's revenue (2.9% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: GESHIP's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GESHIP's Return on Equity is forecast to be low in 3 years time (16.2%).


Next Steps

Past Performance

How has Great Eastern Shipping performed over the past 5 years?

-41.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GESHIP's earnings have declined by -41.9% per year over the past 5 years.

Accelerating Growth: GESHIP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GESHIP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (10.6%).


Return on Equity

High ROE: GESHIP's Return on Equity (2.5%) is considered low.


Return on Assets

ROA vs Industry: GESHIP's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: GESHIP's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Great Eastern Shipping's financial position?


Financial Position Analysis

Short Term Liabilities: GESHIP's short term assets (₹43.6B) exceeds its short term liabilities (₹21.1B)

Long Term Liabilities: GESHIP's short term assets (43.6B) do not cover its long term liabilities (54.5B)


Debt to Equity History and Analysis

Debt Level: GESHIP's debt to equity ratio (88.1%) is considered high

Reducing Debt: GESHIP's debt to equity ratio has reduced from 92.8% to 88.1% over the past 5 years.

Debt Coverage: GESHIP's debt is not well covered by operating cash flow (18.3%).

Interest Coverage: GESHIP's interest payments on its debt are not well covered by EBIT (0.9x coverage).


Balance Sheet

Inventory Level: GESHIP has a high level of physical assets or inventory.

Debt Coverage by Assets: GESHIP's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Great Eastern Shipping's current dividend yield, its reliability and sustainability?

1.86%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%0.6%markettop25%2.4%industryaverage2.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GESHIP's dividend (1.86%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: GESHIP's dividend (1.86%) is low compared to the top 25% of dividend payers in the Indian market (2.42%).

Stable Dividend: GESHIP's dividend payments have been volatile in the past 10 years.

Growing Dividend: GESHIP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48%), GESHIP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Great Eastern Shipping's salary, the management and board of directors tenure and is there insider trading?

13.4yrs

Average board tenure


CEO

Bharat Sheth (61yo)

20.8yrs

Tenure

₹84,215,513

Compensation

Mr. Bharat Kanaiyalal Sheth has been the Managing Director of The Great Eastern Shipping Company Limited since April 1, 1999. Mr. Sheth has expertise in specific functional areas include management and mar ...


CEO Compensation Analysis

Compensation vs. Market: Bharat's total compensation ($USD1.18M) is above average for companies of similar size in the Indian market ($USD364.54K).

Compensation vs Earnings: Bharat's compensation has been consistent with company performance over the past year.


Board Age and Tenure

13.4yrs

Average Tenure

63yo

Average Age

Experienced Board: GESHIP's board of directors are seasoned and experienced ( 13.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Jayesh Trivedi (59yo)

    President of Secretarial & Legal

    • Tenure: 0yrs
    • Compensation: ₹13.28m
  • Bharat Sheth (61yo)

    MD & Deputy Chairman

    • Tenure: 20.8yrs
    • Compensation: ₹84.22m
  • Tapas Icot (63yo)

    President of Shipping & Executive Director

    • Tenure: 5.2yrs
    • Compensation: ₹21.89m
  • G. Shivakumar (51yo)

    CFO & Executive Director

    • Tenure: 4.9yrs
    • Compensation: ₹21.61m
  • Udaybir Bakshi (44yo)

    General Manager of Sale & Purchase

    • Tenure: 0yrs
  • Correa Pradeep (58yo)

    Head of Fleet Personnel

    • Tenure: 0yrs
  • Correa Prakash (60yo)

    Vice President of Operations

    • Tenure: 0yrs
    • Compensation: ₹17.31m
  • Salil Manalmaril (53yo)

    Head of Human Resources

    • Tenure: 0yrs
  • Avinash Sukthankar (55yo)

    Assistant Vice President of Accounts & MIS

    • Tenure: 0yrs
  • Anjali Kumar

    Head of Corporate Communications

    • Tenure: 0yrs

Board Members

  • Farrokh Kavarana (75yo)

    Non-Executive Independent Director

    • Tenure: 4.9yrs
    • Compensation: ₹200.00k
  • Vineet Nayyar (81yo)

    Non-Executive Independent Director

    • Tenure: 15.6yrs
    • Compensation: ₹500.00k
  • Bharat Sheth (61yo)

    MD & Deputy Chairman

    • Tenure: 20.8yrs
    • Compensation: ₹84.22m
  • Kanaiyalal Sheth (87yo)

    Non-Executive Chairman

    • Tenure: 27.8yrs
    • Compensation: ₹500.00k
  • Berjis Desai (63yo)

    Non-Independent Non-Executive Director

    • Tenure: 13yrs
    • Compensation: ₹1.50m
  • Tapas Icot (63yo)

    President of Shipping & Executive Director

    • Tenure: 5.2yrs
    • Compensation: ₹21.89m
  • Cyrus Guzder (74yo)

    Non-Executive Independent Director

    • Tenure: 16.6yrs
    • Compensation: ₹1.70m
  • Ravi Sheth (58yo)

    Non-Executive Director

    • Tenure: 13.8yrs
  • G. Shivakumar (51yo)

    CFO & Executive Director

    • Tenure: 4.9yrs
    • Compensation: ₹21.61m
  • Rita Bhagwati

    Non-Executive Independent Director

    • Tenure: 4.9yrs
    • Compensation: ₹1.10m

Company Information

The Great Eastern Shipping Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Great Eastern Shipping Company Limited
  • Ticker: GESHIP
  • Exchange: NSEI
  • Founded: 1948
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: ₹42.842b
  • Shares outstanding: 147.73m
  • Website: https://www.greatship.com

Location

  • The Great Eastern Shipping Company Limited
  • Ocean House
  • 134/A, Dr. Annie Besant Road
  • Mumbai
  • Maharashtra
  • 400018
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500620BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 1991
GESHIPNSEI (National Stock Exchange of India)YesEquity SharesININRJan 1991

Biography

The Great Eastern Shipping Company Limited, through its subsidiaries, engages in the shipping and offshore businesses in India and internationally. The company is involved in the transportation of goods th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 12:54
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.