The Shipping Corporation of India Limited (SCI) is a leading public sector enterprise in India. The company is engaged in the business of shipping and logistics sector.
Over the years, SCI operates a diverse fleet of vessels including bulk carriers, tankers, offshore supply vessels and container ships.
This article will provide an analysis of SCI’s current position, growth prospects and stock price targets for the medium to long term.
Current Performance
The company has constantly focused on optimising its fleet, reducing operating costs and leveraging its expertise in the shipping industry.
In FY 202-24, SCI reported a strong financial performance with growth in revenue and profitability due to improved operational efficiency. See financial data below for more details.
| Stock | Symbol | Price | Chart (24H) | 52 Week Range | Chart (5D) | Industry | Type | Open | Close | High | Low | Volume | Marketcap | Previous Close | Change % | 52 Weeks High | 52 Weeks Low | EPS | Dividend Yield | Dividend Rate | Change | Shares | Last Updated |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
 SHIPPING CORPORATION OF INDIA SCI.BO | SCI.BO | ₹ 148.60 | Marine Shipping | EQUITY | ₹ 152.95 | ₹ 150.25 | ₹ 153.15 | ₹ 148.15 | 101,902 | 69.22B | ₹ 150.25 | 1.10% | ₹ 384.80 | ₹ 138.25 | 20.74 | 0.34% | 0.50 | ₹ 1.65 | 465,799,008 | 24 hours ago |
Growth
As a government-owned entity, SCI benefits from policy support and initiatives aimed at promoting India’s maritime sector.
The Sagarmala Project and the National Logistics Policy are expected to increase demand for shipping services.
- Diversified Fleet: SCI’s diversified fleet will cater to the needs of various segments of the shipping industry, including crude oil, petroleum products, dry bulk and containerised cargo. This diversification reduces dependence on any one segment and provides stability to revenue streams.
- Expansion: The company is actively exploring opportunities to expand and modernise the fleet. The company is investing in new, fuel-efficient vessels to replace older vessels, which will increase operational efficiency.
- Global Demand: The demand for shipping services is expected to remain strong, as the company is well positioned to benefit from its strong presence in both domestic and international markets.
Share price target – Short term
The stock is trading at around ₹140-150 per share. Based on the company’s strong fundamentals, and industry trends, we believe SCI has the potential to deliver significant returns to investors over the medium to long term.
- Short term (6-12 months): SCI share price is expected to remain between ₹160 – 180 due to improved financial performance in the shipping sector.
Share price target – Medium term
- Medium term (1-2 years): Over the next 1-2 years, SCI share price could reach ₹200-220 due to fleet expansion, higher freight rates and rising demand for shipping services.
Share price target – Long term
- Long term (3-5 years): Assuming continued growth and continued government support, SCI share price could reach ₹300 or more in the long term.
Risks – SCI
The outlook appears promising, but investors should be aware of the potential risks:
- Volatility in global freight rates.
- Fluctuations in crude oil prices, which impact operating costs.
- Geopolitical tensions and trade disruptions.
- Delays in fleet modernisation and expansion plans.
Final Thoughts
The Shipping Corporation of India Limited is a fundamentally strong company and also significant growth potential for the long-term. Because it has strategic initiatives and government support, and takes advantage of opportunities in the shipping industry.
Medium to long-term investors consider buying the stock at current levels, with a target price of ₹200-220 over the next 1-2 years and ₹300+ over the long term.
However, as with any investment, it is important to keep a close eye on industry trends and company performance.
