The Shipping Corporation of India Limited

Industrials — Marine Shipping · NSE

₹285.15+₹1.15 (+0.40%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

Company site ↗

The 60-second version of The Shipping Corporation of India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

The Shipping Corporation of India Limited, a marginal liner shipping company, engages in the business of transporting goods in India. It operates through Liner, Bulk, Tanker, and Technical & Offshore segments.

IndustryMarine Shipping

SectorIndustrials

Employees1,443

Annual revenue₹5,748 Cr

How does it make money?

Turns over ₹5,748 Cr a year. Of every ₹100 of sales, about ₹24 reaches shareholders as profit, with ₹45 left at the operating level before interest, tax and depreciation. Each of its 1,443 employees supports ₹3.98 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.98 Cr

Who are its competitors?

The closest listed comparisons in its industry are ADANI PORT & SEZ LTD, LARSEN & TOUBRO LTD.. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 14.1% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -0% while net margin moved +56% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-0%

Margin effect+56%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.52 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

69/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

87/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

8.2x

3Y Median

12.8x

40 monthly readings · mean 12.7x · range 7.0x–18.5x

Sector Median

30.0x

median of 2 sector peers

🟢Current valuation is approximately 36% below its 3y median of 12.8x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 73% below the peer median of 30.0x.

vs. its own history

Cheap

12.8x median over 40 months · -36%

vs. sector peers

Cheap

30.0x median of 2 peers · -73%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.2x

PEG

0.52

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 28.7% to 44.7% over 3 years.
Return on capital is rising
ROCE has improved from 10.7% to 14.1%.
Very low debt
Debt/Equity of 0.29x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Inventory building faster than salesFinancial
Inventory up 82% against revenue up -0% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹207 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 28.7% to 44.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 36% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 73% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 43%✓ 44.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹207 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 11%✓ 14.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 12.8x✓ 8.2x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 3 neutral · 1 weak

Market Cap

₹13,282 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.2x

Cheap

Cheap against the generic band

P/B Ratio

1.46x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹34.74

Profitable

Profitable on a per-share basis

ROE

14.9%

Moderate

Moderate capital efficiency

ROCE

14.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.29x

Low

Conservative leverage

Revenue Growth (YoY)

40.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

75.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.63%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹207 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

86.4x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

Operating Margin

32.5%

Good

Healthy core-business profitability

Net Margin

25.6%

Good

Strong bottom-line conversion

Current Ratio

2.23

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.52

Defensive

Steadier than the market

52W Range Position

52%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

279.7 / 285.9

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

58.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5,770 Cr	₹5,032 Cr	₹5,588 Cr	₹5,748 Cr	-0.1%
EBITDA	₹1,654 Cr	₹1,625 Cr	₹1,922 Cr	₹2,571 Cr	+15.8%
EBITDA Margin	28.7%	32.3%	34.4%	44.7%	—
PAT (Net Profit)	₹870 Cr	₹679 Cr	₹844 Cr	₹1,353 Cr	+15.8%
EPS	₹18.68	₹14.58	₹18.11	₹29.05	+15.9%
ROE	12.6%	9.0%	10.1%	14.9%	—
ROCE	10.7%	8.7%	9.9%	14.1%	—
Total Debt	₹2,605 Cr	₹2,914 Cr	₹2,228 Cr	₹2,679 Cr	+0.9%
Free Cash Flow	₹990 Cr	₹482 Cr	₹558 Cr	-₹207 Cr	—

🟡 Revenue has been broadly flat over 3 years (-0.1% a year).

🟢 EBITDA has grown at 15.8% a year over 3 years.

🟢 EBITDA Margin has risen from 28.7% to 44.7% over 3 years (+16.1 pts).

🟢 PAT (Net Profit) has grown at 15.8% a year over 3 years.

🟢 EPS has grown at 15.9% a year over 3 years.

🟢 ROE has risen from 12.6% to 14.9% over 3 years (+2.3 pts).

🟢 ROCE has risen from 10.7% to 14.1% over 3 years (+3.5 pts).

🟡 Total Debt has been broadly flat over 3 years (0.9% a year).

🔴 Free Cash Flow has turned negative, from ₹990 Cr to -₹207 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹13,319 Cr

Total Liabilities

₹4,222 Cr

Cash & Equivalents

₹106 Cr

Operating Cash Flow

₹1,343 Cr

Capex

-₹1,550 Cr

Shareholding (proxy)

Institutional Holding

4.4%

Insider Holding

63.7%

Corporate Actions

Dividend Rate

₹7.5

Ex-Dividend Date

04 Sept 2026

Peer Comparison

Company	P/E	ROE
ADANI PORT & SEZ LTD	29.9x	14.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%

Recent News

4 mixed2 general

116% up in 5 years! Shipping Corporation of India share price jumps 4% today | What should investors do?

Livemint, 05 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Shipping Corporation of India (SCI.NS) Eases 1.30% to ₹277.9, Holding Above ₹264 Support - Earnings Miss Risk

https://www.siam.in/, 13 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Shipping Corporation of India Share Price: Buy or Sell

Univest, 03 Sept

116% up in 5 years! Shipping Corporation of India share price jumps 4% today | What should investors do?

TradingView, 05 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Shipping Corporation of India shares rally 9%; what is giving the stock a lift?

Upstox, 05 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Should You Be Adding Shipping Corporation of India (NSE:SCI) To Your Watchlist Today?

Simply Wall Street, 12 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability · Valuation

MiddlingGrowth · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑