Essar Shipping Limited. (ESSARSHPNG) AI Stock Analysis

• Market Cap: ₹5.82B
• Dividend Yield: N/A
• Average Volume (3M): 40.42K
• Price to Earnings (P/E): 0.8
• Beta (1Y): 2.40
• Revenue Growth: -20.86%
• EPS Growth: N/A
• Country: IN
• Employees: 46
• Sector: Services
• Sector Strength: N/A
• Industry: Marine Shipping
• EPS (TTM): 1.32
• Shares Outstanding: 206,976,060
• 10 Day Avg. Volume: 52,405
• 30 Day Avg. Volume: 40,422
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹26.00
• Price Target Upside: -7.57% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: ₹26.00 ▼(-7.57% Downside)

Essar Shipping Limited's overall stock score is primarily impacted by its precarious financial performance, characterized by high debt levels and negative equity. Technical analysis indicates a bearish trend, with the stock trading below key moving averages. Although the valuation appears attractive with a low P/E ratio, the financial instability and lack of dividend yield are significant concerns.

Essar Shipping Limited. Business Overview & Revenue Model

Company Description

Essar Shipping Limited, a shipping company, provides sea transportation, logistics, and oilfields services. The company is involved in the fleet operating and chartering activities consisting of tankers and dry bulkers; and oilfields services, such as land and semi- submersible rigs; and logistics services, including trucks, trailers, and tippers. It also offers contract drilling services to oil and gas companies. The company operates a fleet of 12 vessels, including a double hull very large crude oil carrier, 6 mini-capesize vessels, a panamax bulk carrier, 2 supramax bulk carriers, and 2 general cargo ships. It operates in India, Singapore, Cyprus, the United Arab Emirates, Taiwan, Kuwait, Demark, and Bangladesh. The company was incorporated in 2010 and is based in Mumbai, India. Essar Shipping Limited is a subsidiary of Essar Shipping Mauritius Holdings Limited.

How the Company Makes Money

Essar 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

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2020
Income Statement
Total Revenue	1.56B	102.60M	127.70M	606.70M	3.25B	4.59B
Gross Profit	1.19B	-88.60M	-697.50M	152.00M	-98.00M	-1.36B
EBITDA	7.15B	7.58B	83.30M	17.96B	3.82B	400.20M
Net Income	5.83B	6.60B	-1.18B	16.50B	-784.90M	-6.20B
Balance Sheet
Total Assets	0.00	3.00B	9.11B	10.47B	11.70B	20.84B
Cash, Cash Equivalents and Short-Term Investments	61.80M	63.50M	239.50M	270.90M	271.70M	333.10M
Total Debt	0.00	16.31B	26.42B	27.04B	39.12B	45.99B
Total Liabilities	24.08B	26.79B	35.85B	36.70B	58.16B	66.33B
Stockholders Equity	-24.08B	-23.80B	-28.07B	-27.42B	-49.14B	-48.13B
Cash Flow
Free Cash Flow	0.00	3.48B	-469.60M	5.14B	1.40B	412.90M
Operating Cash Flow	0.00	5.28B	-465.00M	5.14B	1.40B	965.60M
Investing Cash Flow	0.00	2.67B	567.20M	903.10M	4.93B	-536.60M
Financing Cash Flow	0.00	-2.08B	-705.20M	-9.69B	-6.27B	-862.30M

Essar Shipping Limited. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.13
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ESSARSHPNG, the sentiment is Positive. The current price of 28.13 is above the 20-day moving average (MA) of 25.62, above the 50-day MA of 26.09, and below the 200-day MA of 29.42, indicating a neutral trend. The MACD of 0.72 indicates Negative momentum. The RSI at 60.73 is Neutral, neither overbought nor oversold. The STOCH value of 87.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ESSARSHPNG.

Essar Shipping Limited. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RITCO	64 Neutral	₹7.55B	17.09	13.08%	―	32.13%	9.29%
SNOWMAN	57 Neutral	₹8.86B	137.44	1.40%	1.89%	11.69%	-42.04%
ESSARSHPNG	48 Neutral	₹5.82B	0.81	―	―	-20.86%	―
LANCER	46 Neutral	₹3.02B	-16.51	-0.07%	―	-1.67%	-128.99%
SICALLOG	42 Neutral	₹7.16B	-36.11	541.72%	―	43.60%	32.19%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%