Great Eastern Shipping Company Ltd – EPS ₹143, Dividend 3%, P/B ~1: Tankers, Rigs, and a Cash Positive Deck
1. At a Glance
Founded in 1948 with a single Liberty ship, today Great Eastern Shipping (GESCO) runs India’s largest private shipping fleet and offshore drilling business. FY25 PAT was ₹2,037 Cr, EPS ₹143, while stock trades at just 8.4x earnings. Dividend yield? A sailor-friendly 3%. Book value is ₹999, CMP is ₹975 – basically, the stock is sailing at “buy one get one free” levels.
2. Introduction
If Bollywood made a movie about shipping, Great Eastern would be the veteran actor still holding its own against a new-gen cast. Born in the post-independence era, the company has navigated oil shocks, freight cycles, piracy headlines, and now carbon neutrality sermons from climate warriors.
While PSU cousin Shipping Corporation of India is still trying to figure out disinvestment paperwork, GESCO has quietly built a ₹14,000 Cr market cap empire with 39 ships and 23 offshore assets. Its presence is global – nearly 56% revenue outside India – proving that it doesn’t just transport crude oil but also India’s ambitions to play with global maritime giants.
Still, the shipping industry is not a Netflix subscription – it’s cyclical, volatile, and dependent on crude prices, freight rates, and geopolitics. Investors here need sea legs.
3. Business Model – WTF Do They Even Do?
Think of GESCO as two cousins running parallel hustles:
Shipping (81% revenue) – Moving crude oil, petroleum products, LPG, and dry bulk. The fleet: 6 crude tankers, 19 product tankers, 4 LPG carriers, 14 bulkers. Basically, a moving oil refinery with side gigs in coal and fertilizer.
Offshore (19% revenue) – Through Greatship India, running 19 offshore logistics vessels and 4 drilling rigs. This is the oilfield Uber – carrying equipment, supplies, and providing rigs for exploration.
Revenue split is stable (81:19), but margin dynamics vary – shipping can swing wildly with freight rates, while offshore has steadier long-term contracts.
4. Financials Overview
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
₹1,201 Cr
₹1,508 Cr
₹1,223 Cr
-20.3%
-1.8%
EBITDA
₹643 Cr
₹911 Cr
₹502 Cr
-29.4%
28.1%
PAT
₹504 Cr
₹812 Cr
₹363 Cr
-37.9%
38.8%
EPS (₹)
35.3
56.9
25.4
-38.0%
39.0%
Commentary: Shipping is cyclical, and so is GESCO’s P&L – one quarter it’s champagne, next quarter it’s nimbu-paani. YoY revenue dipped 20%, PAT fell nearly 38%. But hey, EBITDA margin is still 54% – the kind Reliance Retail dreams about.
5. Valuation – Fair Value Range Only
Method 1: P/E
EPS TTM = ₹143
Industry P/E = ~15x
Range = 7x – 12x (cyclical discount)
Fair Price = ₹1,000 – ₹1,700
Method 2: EV/EBITDA
EV = ~₹10,400 Cr
EBITDA = ~₹2,800 Cr
EV/EBITDA ~3.7x vs global peers 5–7x
Fair Price ~₹1,200 – ₹1,600
Method 3: DCF (Simplified)
Assume mid-cycle PAT ₹1,600 Cr, COE 13%, terminal growth 2%
DCF Value = ₹1,100 – ₹1,400
👉 Fair Value Range: ₹1,000 – ₹1,600 Disclaimer: This range is for educational purposes only and not investment advice.
6. What’s Cooking – News, Triggers, Drama
Fleet Expansion: Recently contracted 2016-built Kamsarmax (81,922 dwt) and a 164,715 dwt Suezmax tanker. The fleet keeps bulking up while PSU rivals fill paperwork.
Asset Churn: Bought “Jag Priya” tanker, sold older “Jag Pahel.” Standard old-for-new vessel swap – like upgrading from a 2004 WagonR to a 2010 Swift.
Cash Positive: From USD 360 mn debt in FY19 to USD 300 mn cash surplus in FY24. Basically, the rare shipping company with more cash than excuses.
