Essar Shipping: A Micro-Cap Stock with Multibagger Potential

Essar Shipping Limited, an India-based integrated logistics services company, is making waves in the stock market. The company, which operates in fleet operating and chartering activities, has a significant presence in international and coastal voyages. Its geographical segments span across India, Singapore, Cyprus, the United Arab Emirates, the United Kingdom, Switzerland, Taiwan, Kuwait, Denmark, and Bangladesh.





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Business Verticals

Essar Shipping has invested directly and through its subsidiaries and associates in diverse business verticals. These include fleet operating and chartering (tankers and dry bulkers), oilfield services (land rigs and semi-submersible rigs), and logistics services (trucks, trailers, and tippers). The company also provides sea transportation, logistics services, and oilfield services to Arkay Logistics Limited and Essar Bulk Terminal Limited. Its subsidiaries include OGD Services Holdings Limited, Energy II Limited, and Essar Shipping DMCC.

Financial Performance

According to the Q3 FY24 results, the company reported a revenue of Rs 3 crore, representing a de-growth of 82 per cent, and a net loss of Rs 41 crore. However, in FY24, the company reported a revenue of Rs 61 crore and a net profit of Rs 1,650 crore, a significant turnaround compared to a net loss of Rs 78 crore in the previous year.

Shareholding Pattern

The shareholding pattern of the company reveals that promoters hold a substantial 73.75 per cent of the company. Foreign Institutional Investors (FIIs) hold 0.04 per cent and Domestic Institutional Investors (DIIs) hold 0.02 per cent. Public investors hold 26.19 per cent as per the recent update.

Investment Potential

Investors must keep this micro-cap stock on their radar. Despite the recent de-growth, the company's significant net profit in FY24 and its diverse business verticals indicate its potential to deliver multibagger returns in the future. As always, investors are advised to do their due diligence and consult with a financial advisor before making any investment decisions.

Disclaimer

The information provided in this blog post is for informational purposes only. sharemarket-buzz.com does not advise investing in the stock market. The stock market is subject to risk, hence it is advisable to seek expert advice before investing


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