Great Eastern Shipping Shares Gain After Reporting Record Profit In FY23

Shares of Great Eastern Shipping Co. rose the most in over 10 weeks after the company reported its highest-ever net profit and dividend in the year ended March.

Great Eastern Shipping Co.'s net profit rose 282.04% year-on-year to Rs 721.94 crore in the quarter ended March, according to an exchange filing.

The company earned its highest-ever net profit of Rs 2,575 crore on a consolidated basis in FY23, it said in its investor presentation. The net asset moved by 68% in FY23 to Rs 1,164 per share. Great Eastern Shipping Co. also announced its highest-ever dividend for the year at Rs 28.80 apiece.

Great Eastern Shipping Co. Q4 FY23 (Consolidated, year-on-year)

• Revenue up 58.92% at Rs 1,455.98 crore.

• Ebitda up 119.39% at Rs 847.04 crore.

• Ebitda margin at 58.18% vs. 42.14%.

• Net profit is up 282.04% at Rs 721.94 crore.

• The board declared a fourth interim dividend of Rs 9 per share for Q4, with a total of Rs 28.80 apiece for FY23, implying an aggregate outgo of Rs 128.49 crore in FY23.

Shares of Great Eastern Shipping Co. surged 7.23% to Rs 725.65 apiece, compared to a 0.34% advance in the benchmark NSE Nifty 50 as of 10:08 a.m. on Monday.

The stock rose as much as 7.85% intraday, the most since March 2. Total traded volume stood at 19.9 times its 30-day average. The relative strength index was at 71, implying that the stock may be overbought.

Two analysts tracking the company maintain a 'buy' rating on the stock, according to Bloomberg data. The average 12-month consensus price target implies a potential upside of 24.1%.