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Essar Shipping Limited. (IN:ESSARSHPNG)
:ESSARSHPNG
India Market
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Essar Shipping Limited. (ESSARSHPNG) AI Stock Analysis

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IN:ESSARSHPNG

Essar Shipping Limited.

(ESSARSHPNG)

Rating:46Neutral
Price Target:
₹26.00
▲(4.08% Upside)
Essar Shipping Limited's stock is primarily impacted by its weak financial performance, characterized by high leverage, negative equity, and operational inefficiencies. Technical analysis further supports this bearish outlook with significant downward momentum. However, the low P/E ratio indicates potential undervaluation, though it may be due to financial instability rather than actual market opportunity.

Essar Shipping Limited. (ESSARSHPNG) vs. iShares MSCI India ETF (INDA)

Essar Shipping Limited. Business Overview & Revenue Model

Company DescriptionEssar Shipping Limited (ESSARSHPNG) is a prominent player in the maritime logistics sector, offering comprehensive shipping and logistics solutions. The company specializes in the transportation of cargo, including dry bulk, oil, and gas, leveraging its diverse fleet of vessels. Essar Shipping Limited is dedicated to providing efficient, reliable, and cost-effective shipping services to its clients worldwide.
How the Company Makes MoneyEssar Shipping Limited generates revenue primarily through the chartering and operation of its fleet of ships. The company earns income by transporting bulk commodities, such as iron ore, coal, and crude oil, for various industries. It operates on a time-charter, voyage-charter, and bareboat-charter basis, which allows it to charge clients based on the duration of the contract or the specific voyage. Additionally, the company benefits from strategic partnerships and long-term contracts with major industrial clients, ensuring a steady stream of revenue. Other sources of income may include ancillary services related to maritime logistics, such as port operations and ship management.

Essar Shipping Limited. Financial Statement Overview

Summary
Essar Shipping Limited's financial position is precarious, with high debt levels and negative equity, indicating potential solvency issues. Despite an improved net income in 2025, operational inefficiencies persist, as reflected in consistently negative EBIT margins. Cash flow generation shows improvement, but the volatility and past negative trends highlight ongoing liquidity challenges. These factors together suggest significant financial instability and risk.
Income Statement
32
Negative
Essar Shipping Limited has faced a challenging financial period, evident from negative gross and net profit margins. The company reported a significant net income improvement in 2025, but it was not indicative of operational efficiency given the consistent negative EBIT and gross profit margins. Revenue growth has been volatile, showcasing a decline in recent years, which raises concerns about long-term sustainability.
Balance Sheet
25
Negative
The balance sheet reflects high leverage with a negative equity, indicating financial instability. The debt-to-equity ratio is unfavorably high due to the negative stockholders' equity, posing significant financial risk. The equity ratio is negative, signifying that liabilities exceed assets, which raises concerns about the company's solvency.
Cash Flow
45
Neutral
The cash flow statement presents a mixed picture, with positive operating cash flow and free cash flow in the latest year, suggesting some ability to generate cash operationally. However, the high variability in free cash flow growth and negative past figures highlight potential liquidity issues. The operating cash flow to net income ratio is favorable for 2025, but historical fluctuations indicate inconsistency.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2020
Income Statement
Total Revenue1.56B102.60M127.70M606.70M3.25B4.59B
Gross Profit1.19B-88.60M-697.50M152.00M-98.00M-1.36B
EBITDA7.15B7.58B83.30M17.96B3.82B400.20M
Net Income5.83B6.60B-1.18B16.50B-784.90M-6.20B
Balance Sheet
Total Assets0.003.00B9.11B10.47B11.70B20.84B
Cash, Cash Equivalents and Short-Term Investments61.80M63.50M239.50M270.90M271.70M333.10M
Total Debt0.0016.31B26.42B27.04B39.12B45.99B
Total Liabilities24.08B26.79B35.85B36.70B58.16B66.33B
Stockholders Equity-24.08B-23.80B-28.07B-27.42B-49.14B-48.13B
Cash Flow
Free Cash Flow0.003.48B-469.60M5.14B1.40B412.90M
Operating Cash Flow0.005.28B-465.00M5.14B1.40B965.60M
Investing Cash Flow0.002.67B567.20M903.10M4.93B-536.60M
Financing Cash Flow0.00-2.08B-705.20M-9.69B-6.27B-862.30M

Essar Shipping Limited. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price24.98
Price Trends
50DMA
27.09
Negative
100DMA
29.14
Negative
200DMA
30.33
Negative
Market Momentum
MACD
-0.77
Negative
RSI
46.27
Neutral
STOCH
76.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ESSARSHPNG, the sentiment is Neutral. The current price of 24.98 is above the 20-day moving average (MA) of 24.91, below the 50-day MA of 27.09, and below the 200-day MA of 30.33, indicating a neutral trend. The MACD of -0.77 indicates Negative momentum. The RSI at 46.27 is Neutral, neither overbought nor oversold. The STOCH value of 76.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:ESSARSHPNG.

Essar Shipping Limited. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
₹7.76B17.55
32.13%9.29%
56
Neutral
$13.56B12.8310.03%0.92%7.13%-12.93%
55
Neutral
₹9.03B140.08
1.88%11.69%-42.04%
46
Neutral
₹5.16B0.72
-20.86%
46
Neutral
₹3.23B8.66
-1.67%-128.99%
41
Neutral
₹6.01B
43.60%53.99%
₹5.48B22.77
* Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:ESSARSHPNG
Essar Shipping Limited.
24.98
-17.10
-40.64%
IN:LANCER
Lancer Container Lines Ltd
12.89
-31.77
-71.14%
IN:RITCO
Ritco Logistics Ltd.
271.00
-46.05
-14.52%
IN:SICALLOG
Sical Logistics Limited.
95.97
-81.53
-45.93%
IN:SNOWMAN
Snowman Logistics Ltd
53.09
-26.48
-33.28%
IN:TRANSWORLD
Transworld Shipping Lines Ltd
271.30
-34.62
-11.32%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 05, 2025