Great Eastern Shipping Co. Downgraded to 'Hold' by MarketsMOJO

Great Eastern Shipping Company, a midcap shipping company, has recently been downgraded to a 'Hold' by MarketsMOJO on October 23, 2023. This decision was based on various factors, including the company's ability to service debt, long-term growth potential, technical indicators, valuation, and institutional holdings.
One of the main reasons for the downgrade is the company's low Debt to EBITDA ratio of 0.69 times, indicating a strong ability to service debt. Additionally, the company has shown healthy long-term growth with an annual operating profit growth rate of 67.64%.

Technically, the stock is currently in a Mildly Bullish range, with both MACD and Bollinger Band technical factors being Bullish. Furthermore, with a ROE of 25.1 and a price to book value of 1.2, the stock is considered to be trading at a fair value compared to its historical valuations.

In terms of performance, the company has generated a return of 29.40% in the past year, while its profits have increased by 55.6%. This has resulted in a low PEG ratio of 0.1, indicating a good investment opportunity. Moreover, the company offers a high dividend yield of 4%.

Another positive aspect of the company is its high institutional holdings at 43.21%. These investors have better resources and capabilities to analyze the fundamentals of companies, making their investment decisions more reliable.

In the long term, Great Eastern Shipping Company has outperformed the BSE 500 index, generating a return of 29.40% in the last year and outperforming the index in the last 3 years, 1 year, and 3 months. With a market cap of Rs 12,738 crore, it is the biggest company in the shipping sector, constituting 49.10% of the entire sector. Its annual sales of Rs 5,389.72 crore also make up 42.85% of the industry.

However, the company has recently declared negative results in September 2023 after 7 consecutive positive quarters. The operating profit to interest ratio has fallen to its lowest at 8.34 times, and the net sales have also decreased to its lowest at Rs 1,229.02 crore. Despite this, the company's overall performance in the long term and near term has been market-beating, making it a stock to watch out for.