At a glance:
Between 2020 and 2025, GE Shipping has gone from a COVID-era underdog to India’s largest private shipping company, with ₹5,323 Cr in revenue and a 5-year PAT CAGR of 94%. But with FY25 profits declining slightly, rising working capital days, and a -15% stock return in the past year — investors are wondering: is this just a pit stop, or is the ship turning?
🧭 About GE Shipping
- Founded: 1948, with a Liberty ship (yes, like WWII relics)
- Today: India’s largest private shipping company
- Segments: Shipping (tanker + dry bulk) and offshore oil services via Greatship (India) Ltd
- Fleet as of FY24:
- 43 ships (tankers + dry bulk carriers)
- 23 offshore assets
👔 Key Managerial Personnel
| Name | Role |
|---|---|
| Mr. K.M. Sheth | Executive Chairman |
| Mr. Bharat Sheth | MD & Deputy Chairman |
| Mr. Shreyas G. Sheth | Non-Executive Director |
| Mr. P. Murali Prasad | CFO |
| Ms. Ritu Jhingon | Company Secretary |
💸 5-Year Financial Recap (FY21–FY25)
🧾 Profit & Loss (Consolidated)
| FY | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) | EPS (₹) | OPM (%) |
|---|---|---|---|---|---|
| 2021 | 3,337 | 1,653 | 919 | 62.5 | 50% |
| 2022 | 3,509 | 1,540 | 630 | 44.1 | 44% |
| 2023 | 5,690 | 3,128 | 2,575 | 180.4 | 55% |
| 2024 | 5,255 | 3,022 | 2,614 | 183.1 | 58% |
| 2025 | 5,323 | 2,677 | 2,344 | 164.2 | 50% |
📈 5-Year PAT CAGR: 94%
📉 FY25 saw the first dip in PAT post-pandemic
💰 Balance Sheet Check
| FY | Net Worth (₹ Cr) | Debt (₹ Cr) | Cash (₹ Cr est.) | Net Debt/Equity |
|---|---|---|---|---|
| 2021 | 7,700 | 5,047 | ~1,200 | 0.5x |
| 2022 | 8,052 | 4,655 | ~1,400 | 0.4x |
| 2023 | 10,276 | 3,649 | ~2,500 | 0.1x |
| 2024 | 12,398 | 3,048 | ~3,000 | 0.0x |
| 2025 | 14,259 | 2,163 | ~3,800 | Net Cash 🎉 |
✅ Net Debt-Free in FY25
⚠️ Working Capital Days spiked from 28 to 182, a red flag on receivables
🚢 Segment Insights
- Shipping Revenue remains stable but cyclical
- Offshore (Greatship) has seen contract volatility but contributes heavily to margins
- Other Income ₹834 Cr in FY25 – recurring or not? Needs scrutiny
💹 Forward-Looking Fair Value (FV) Range
- FY25 EPS: ₹164.2
- Apply conservative P/E range: 6–8× (sector average skewed by SCI/Essar losses)
👉 Edu FV Range: ₹985 – ₹1,315
At CMP ₹987 — you’re at lower bound of valuation, but upside capped unless shipping rates spike.
🌊 Growth Outlook
- Prospects: Stable long-term charter demand, expanding offshore contracts
- Risks: Shipping is global-cyclic, fuel costs, freight rate crashes
- Capex in FY25 was muted, but cash pile hints at M&A or buybacks
🧠 EduInvesting Take
So… GES is rich, debt-free, and profitable — yet somehow the stock fell 15% in 1 year?
- Investors want growth, not just stability
- Offshore margins are fat, but volatile
- Shipping industry is the crypto of old-school India — boom-bust forever
💡 If you believe shipping rates will rise (thanks Red Sea, Panama Canal), this is the cleanest bet.
🧨 Risks & Red Flags
- Other income inflates PBT — strip it, and core business growth is flat
- Working capital bloat = receivables delay
- Stock is near book value, but no re-rating unless EPS jumps again
🛥️ Final Verdict?
“Great Eastern” is like the OG Indian cruiser — classy, cash-rich, but sometimes too slow to excite.
If oil prices go up, shipping rates spike, or war blocks global routes — this ship might just moon again.
Otherwise? Keep collecting the 3% dividend and say “Aye Aye Captain.”
Author: Prashant Marathe
Date: 10 June 2025
Tags: Great Eastern Shipping, GE Shipping 5-year recap, shipping stocks India, freight rates, offshore assets, debt-free companies, EduInvesting
