Great Eastern Shipping Co. Ltd.
NSE: GESHIPGreat Eastern Shipping Co. Ltd.: A 30-second snapshot
Great Eastern Shipping (GESHIP) reported record FY26 profits with a trailing PE of 7.13 and profit margin of 54.4%, reflecting the cyclical tailwind in global shipping rates. The stock is up 53.68% over 12 months but has pulled back 21.08% from its 52-week high and trades below its 50-DMA at ₹1,418.9. Debt-to-equity stands at 6.409 — elevated but on a falling trajectory — and ROE of 18.85% ranks first among the reported peer group of 6.
P/E
7.1
Forward P/E
7.5
ROE
+18.9%
Debt / Equity
6.41
Profit Margin
+54.4%
Div. Yield
+3.3%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
59/100
News
8 headlines · 3 positive · 2 negative
GESHIP: FY26 saw record profit, strong cash flows, and full compliance with debt covenants - TradingView
TradingView
The Great Eastern Shipping Company Limited Delivers Medium Range Tanker Jag Prakash to Buyers - marketscreener.com
marketscreener.com
Great Eastern Shipping's (NSE:GESHIP) Solid Profits Have Weak Fundamentals - simplywall.st
simplywall.st
Great Eastern Shipping : Q4FY26 Earnings Call Transcripts - marketscreener.com
marketscreener.com
Bandhan Bank, GE Shipping, MOFSL among 5 positional stocks picks for 15-25% upside - Business Today
Business Today
Recent context
- ·FY26 earnings call and a company statement highlighted record profit, strong cash flows, and full compliance with debt covenants, with the delivery of tanker Jag Prakash to buyers reported in May 2026.
- ·A third-party analysis published May 22, 2026 raised questions about the quality of fundamentals underlying GESHIP's solid headline profits — a divergent view to the company's own FY26 characterisation.
- ·News flow over the past month totalled 8 items (3 positive, 3 neutral, 2 negative), with overall sentiment categorised as neutral — no single dominant macro or regulatory catalyst is evident in the coverage.
Strengths
- +ROE of 18.85% and quality score of 73 rank first among the 6-stock peer group in the Services sector comparison, with the nearest peer (ADANIPORTS) at 15.59% ROE and quality score 49.
- +Profit margin of 54.4% combined with a 5Y revenue CAGR of 23.6% and earnings CAGR of 187.5% reflects the magnitude of the shipping cycle upcycle captured in the income statement.
- +FCF was positive in 4 of the available years and debt trend is falling, suggesting improving balance-sheet trajectory even as absolute leverage remains high.
- +Trailing PE of 7.13 and forward PE of 7.45 are the lowest among peers with reported PE data (ADANIPORTS 30.6, CONCOR 28.4, BLUEDART 45.3), representing a material valuation gap on an earnings basis.
Weaknesses
- −Debt-to-equity of 6.409 represents a significant leverage load for a non-financial cyclical; in a freight-rate downcycle, this structure increases the sensitivity of equity value to asset prices and interest costs.
- −Earnings consistency score of 48 signals lumpy, cycle-driven profitability rather than stable compounding — the 5Y earnings CAGR of 187.5% reflects recovery from a depressed base rather than steady-state growth.
- −Price is 21.08% below the 52-week high and 4.5% below the 50-DMA, with RSI at 39.51 — the technical picture reflects a stock that has surrendered a meaningful portion of its annual gain in recent months.
- −Analyst coverage of only 2 analysts with no published consensus rating limits the available external perspective on earnings sustainability and capital allocation.
Open questions
- ?Does the 5Y earnings CAGR of 187.5% reflect a structural shift in the company's competitive position, or is it primarily a function of the shipping freight-rate cycle — and where are rates relative to historical mid-cycle?
- ?At D/E of 6.409 on a falling trajectory, what rate of deleveraging is embedded in the forward PE of 7.45, and how sensitive is equity value to a 20–30% decline in fleet asset valuations?
- ?The earnings consistency score of 48 suggests cyclical lumpiness — over what portion of a full shipping cycle has GESHIP historically maintained ROE above its cost of equity?
- ?What accounts for the divergence between the company's record-profit narrative and the third-party assessment of weak underlying fundamentals — specifically, how much of FY26 net profit is attributable to asset disposal gains versus operating freight income?
Peer comparison: Services
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| GESHIP | Great Eastern Shipping Co. Ltd.You're viewing | 7.1 | +18.9% | 73 |
| Industry avg | across 5 peers | 34.7 | +13.4% | 32 |
| ADANIPORTS | Adani Ports and Special Economic Zone Ltd. | 30.6 | +15.6% | 49 |
| GMRAIRPORT | GMR Airports Ltd. | — | — | 40 |
| BLUEDART | Blue Dart Express Ltd. | 45.3 | +14.8% | 36 |
| CONCOR | Container Corporation of India Ltd. | 28.4 | +9.8% | 23 |
| INDIGO | InterGlobe Aviation Ltd. | — | — | 11 |
Technical state
Current price
₹1,418.90
SMA 50
₹1,486.11
SMA 200
₹1,202.22
RSI (14)
39.5 (neutral)
From 52w high
-21.1%
1Y return
+53.7%
3M return
+9.2%
50-DMA
Below
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity ratio of 6.409 is substantially elevated for a non-financial, capital-intensive cyclical business. Although the debt trend is described as falling, shipping freight rates are historically volatile, and high leverage amplifies downside exposure during freight-rate downturns — asset valuations and interest coverage become critical stress points.
- mediumPrice of ₹1,418.9 is 4.5% below the 50-DMA (₹1,486.11) and 21.08% off the 52-week high, indicating near-term momentum deterioration despite the stock being 17.9% above its 200-DMA (₹1,202.22). RSI at 39.51 is neutral but trending toward the lower boundary of that range.
- mediumAnalyst coverage is extremely thin at 2 analysts with no consensus rating available. The sector peer set spans aviation, logistics, and ports rather than pure shipping peers — 4 of 5 peers report null priceChange1Y and null ROE data — materially limiting the precision of relative valuation and quality comparisons.
- lowEarnings consistency score of 48 stands in contrast to the 5Y earnings CAGR of 187.5% and revenue CAGR of 23.6%. This pattern is consistent with a highly cyclical earnings base — strong in upcycles, prone to sharp reversals — rather than a compounding-quality business.
Cross-section contradictions
- Trailing PE of 7.13 and forward PE of 7.45 sit at a significant discount to the five-sector peer median (PE of ~30), yet the stock is up 53.68% over 12 months with ROE of 18.85% and profit margin of 54.4%. The gap between current earnings and valuation may reflect market expectations of a freight-rate-driven earnings mean-reversion ahead.
- FY26 was described as a record profit year with strong cash flows and full debt-covenant compliance, yet a third-party analysis flagged weak fundamentals behind the headline profits. These divergent readings of the same earnings set suggest earnings quality — including accruals composition and one-off items — warrants closer scrutiny.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 24 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days