Multibagger PSU stock zooms 9% after Q4 profit rises 154%

Shares of state-owned Shipping Corporation of India Ltd (SCI) zoomed nearly 9% today after the state-owned firm reported a 156% rise in the March quarter profit. Shares of Shipping Corp opened 5.68% higher at Rs 99.90 against the previous close of Rs 85.17 on BSE. Later, they zoomed 8.78% to Rs 102.83 on BSE. Total 11.70 lakh shares of the firm changed hands amounting to a turnover of Rs 11.74 crore on BSE. Market cap of Shipping Corp rose to Rs 4,634.70 crore.   

In terms of technicals, the relative strength index (RSI) of Shipping Corp stands at 43.8, signaling it’s trading neither in the oversold nor in the overbought zone. Shipping Corp stock has a one-year beta of 0.7, indicating very low volatility during the period. Shipping Corp shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages 

On the other hand, shares of Shipping Corp lost 5.8% this year and rose 9.27% in a year. 

The stock has delivered multibagger returns in the last three years.  It zoomed 212% during the period.  

Shipping Corporation reported a 156.38 per cent rise in net profit to Rs 376.9 crore in Q4 against a net profit of Rs 148 crore in the corresponding quarter last fiscal. Revenue from operations climbed 8.3 per cent to Rs 1,418.1 crore in Q4 compared to Rs 1,309 crore in the March 2022 quarter.  

The Board recommended a dividend of Re 0.44 per equity share of face value of Rs.10 each, i.e., 4.40% per share, subject to the approval of the shareholders. Operating profit, i.e., earnings before interest and tax, depreciation and amortisation (EBITDA) fell 42.2 per cent year-on-year to Rs 464.5 crore as compared to Rs 326.7 crore, while margins came in at 32.8 per cent. 

Total income rose 7 per cent to Rs 1452.21 crore during the quarter under review from Rs 1355.12 crore in the year-ago period. Total expenses declined to Rs 1,198.65 crore from Rs 1217.74 crore earlier.