Shipping Corporation of India Ltd.
ISIN: INE109A01011 • Market Cap: ₹13,743 Cr
The 5-Pillar Quality Audit for Shipping Corporation of India Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (40.9%), Return on Capital Employed (10.0%), and equity compounding (10.2%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.23 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (2.9%) and 3Y PAT CAGR (23.7%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 8.49 vs PEG of 0.73 and Dividend Yield of 2.5%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 63.8%, backed by 11.1% institutional ownership.
Key Fundamental Strengths
High-Velocity Profit Compounding (3Y PAT CAGR: 23.7%)
Net earnings have compounded at 23.7% annualized, demonstrating operating leverage.
Attractive Valuation Margin (P/E: 8.49)
Trading at a P/E multiple of 8.49, the stock offers a favourable risk-reward entry for quality compounding.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 10.0%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Topline Stagnation (3Y Sales CAGR: 2.9%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Quantitative Strategy Eligibility
Checking SCI against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 73/100 and clean gearing.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Services Sector Peer Comparison
Compare SCI directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Shipping Corporation of India Ltd. (SCI)Current | 73/100 | ₹13,743 Cr | 8.49 | 10.0% | 0.23 | — |
| Adani Ports and Special Economic Zone Ltd. (ADANIPORTS) | 71/100 | ₹3.87 Lakh Cr | 29.51 | 11.6% | 0.57 | View |
| InterGlobe Aviation Ltd. (INDIGO) | 53/100 | ₹2.00 Lakh Cr | — | 5.7% | 0.26 | View |
| GMR Airports Ltd. (GMRAIRPORT) | 73/100 | ₹1.08 Lakh Cr | 225.70 | 5.8% | -15.03 | View |
| JSW Infrastructure Ltd. (JSWINFRA) | 68/100 | ₹76,925 Cr | 51.79 | 13.1% | 0.59 | View |
| Container Corporation of India Ltd. (CONCOR) | 66/100 | ₹39,147 Cr | 31.52 | 13.5% | 0.00 | View |
Frequently Asked Questions: Shipping Corporation of India Ltd.
Q:What is the 5-Pillar Fundamental Score for Shipping Corporation of India Ltd. (SCI)?
Shipping Corporation of India Ltd. has a RupeeTools Fundamental Score of 73/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (67/100), Financial Health (79/100), Growth (64/100), Valuation (90/100), and Ownership Quality (68/100).
Q:Is SCI fundamentally strong for long-term investment?
Yes, SCI exhibits solid fundamental strength with a 73/100 score, driven by a return on equity of 10.2% and a debt-to-equity ratio of 0.23.
Q:Does SCI pass the Coffee Can Investing filter?
No. SCI does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does SCI compare against other Services peers?
Within India's Services sector, SCI trades at a P/E of 8.49 and generates an ROCE of 10.0%. Compare its 5-Pillar score of 73/100 against top sector peers like Adani Ports and Special Economic Zone Ltd. (71/100), InterGlobe Aviation Ltd. (53/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.