Essar Shipping Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Essar Shipping Ltd trades at ₹22.1, in a downtrend and 12 weeks into that stage. That is −21.0% against its own 200-day average. It sits at 0% of a 52-week range of ₹22 to ₹40. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (14 weeks and counting).

Today the stock is in a downtrend — week 12 of stage 4, confirmed. At ₹22.1 it trades −21.0% versus its 200-day average and sits at 0% of its 52-week range (₹22–₹40).

Against the market, two honest reads. Cumulative: over the last 10.0 years the stock moved −15% while the NIFTY 500 moved +236% — behind the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (14 weeks and counting; last ahead the week of 2025-12-19) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 84th percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Essar Shipping Ltd trades at 10.5× P/E, at the pricey end of its own range (84th percentile). Its long-run median P/E is 6.1×, measured across 2.5 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 10.5× is at the pricey end of its own range (84th percentile), against a long-run median of 6.1× measured over 2.5 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: No read Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Essar Shipping Ltd reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read. The read is built from 7 quarters across 0 curves, on partial evidence.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

The latest quarter’s profit carries a one-off item larger than the operating base, so the profit curve is shown but does not vote in the stage call.

The return-on-capital curve is not shown — net worth is negative, so a return on capital is not a meaningful number in any basis. This is a distressed balance sheet, and the stage is read from the growth curves alone.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

26.1/100 — rank 6 of 6 in Shipping · 54% evidence confidence

Essar Shipping Ltd scores 26.1 out of 100 against the 6 companies it is compared with in Shipping, ranking 6. Fill the missing evidence before acting; the ranking is deliberately pulled toward neutral.

The four contributions add to the total exactly: 10.2 + 4.6 + 8.3 + 3 = 26.1. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Essar Shipping Ltd reported ₹2.0 Cr of revenue in the Jun 25 quarter, −33.3% year on year. Over 10 years it has compounded at −40.9% a year. The last full year, FY25, came in at ₹10.0 Cr. The last four reported quarters add to ₹10.0 Cr.

Essar Shipping Ltd reported ₹2.0 Cr of revenue in the Jun 25 quarter, −33.3% year on year. Over 10 years it has compounded at −40.9% a year. The last full year, FY25, came in at ₹10.0 Cr. The last four reported quarters add to ₹10.0 Cr.

FY25 revenue came in at ₹10.0 Cr (−50.0% on the year), capping 10 years at −40.9% compound. The latest quarter (Jun 25) printed ₹2.0 Cr, −33.3% year on year.

Pace check: the last four quarters averaged −941.7% growth against the decade's −40.9% — the current year is running slower than its own long-run rate.

→ Revenue slipped — did margins hold as it scaled? Next: −279.0% this quarter (−104.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Essar Shipping Ltd's operating margin is −279.0% in the Jun 25 quarter, −104.0 percentage points against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged −483.0% to 53.0%. The current quarter sits inside that band.

Essar Shipping Ltd's operating margin is −279.0% in the Jun 25 quarter, −104.0 percentage points against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged −483.0% to 53.0%. The current quarter sits inside that band.

The latest quarter's operating margin is −279.0%, −104.0 pp against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged −483.0%–53.0%.

🚨 Why the margin moved: operating margin went −11,170.6 pp year on year while gross margin went +0.0 pp — the loss came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

→ Margins slipped — did that reach the bottom line? Next: profit null in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Essar Shipping Ltd earned ₹27.0 Cr of net profit in the Jun 25 quarter. That quarter carries a one-off item larger than its own revenue, so the year-on-year figure is an artefact rather than a trading result. Full-year FY25 profit was ₹660 Cr. That is 1,350.0% of the quarter's revenue. The same quarter a year earlier lost ₹35.0 Cr.

Essar Shipping Ltd earned ₹27.0 Cr of net profit in the Jun 25 quarter. That quarter carries a one-off item larger than its own revenue, so the year-on-year figure is an artefact rather than a trading result. Full-year FY25 profit was ₹660 Cr. That is 1,350.0% of the quarter's revenue. The same quarter a year earlier lost ₹35.0 Cr.

Jun 25 profit was ₹27.0 Cr, null year on year. On the full year, FY25 printed ₹660 Cr (null).

🚨 Read this profit with care: at ₹27.0 Cr it is larger than the whole quarter's revenue of ₹2.0 Cr — no operating business earns more than it sells, so this is a one-off item (a debt-to-equity conversion, a tax write-back or an asset sale), not money the business earned. The underlying operations are running at −279.0% operating margin; the year-on-year jump and any P/E built on this number are artefacts of the one-off, not a real earnings turn.

→ Profit rose — but did the cash follow? Next: 45% of the last 2 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 2 fiscal years 45% of Essar Shipping Ltd's reported profit arrived as operating cash — a gap worth watching. In FY25 that was ₹531 Cr of operating cash against ₹660 Cr of profit. After ₹182 Cr of capital spending, ₹349 Cr was left as free cash.

FY25: operating cash of ₹531 Cr against reported profit of ₹660 Cr, leaving free cash of ₹349 Cr after ₹182 Cr of capital spending. Across the last 2 fiscal years the conversion rate is 45% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at 45%: the cash cycle stretched 518 days between FY20 and FY25 — more of each rupee of profit waits inside the cycle before arriving. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: conversion is below par and the cash cycle has stretched 518 days — the next section's job is to find where the cash is stuck.

→ So follow the cash to where it goes. Next: the 538-day cycle, in money terms.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Essar Shipping Ltd's cash conversion cycle runs 538 days in FY25, up from 20 days in FY20. Capital spending ran ₹169 Cr over the last 3 years. At FY25 sales of ₹10.0 Cr each day of that cycle holds about ₹0.0 Cr, so roughly ₹15.0 Cr sits inside the business at any moment.

FY25: debtors at 538 days (an asset-light business — no inventory to speak of) — for a full cycle of 538 days, looser than FY20's 20.

In money terms: at FY25 sales of ₹10.0 Cr, each day of the cycle holds about ₹0.0 Cr — so the 538-day loop keeps roughly ₹15.0 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹169 Cr over the last 3 fiscal years against ₹74.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹180 Cr (FY25) — capacity paid for but not yet earning.

The synthesis: the working-capital loop is the cash sink the router flagged — watch the cycle, not the P&L.

→ Does all this activity actually earn its cost of capital? Next: ROCE is −208%.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Essar Shipping Ltd earns a ROCE of −208% in FY24. A return-on-invested-capital spread against the cost of capital is not computable from what is held here. The wiring behind it is 6,600.0% net margin on 0.03× asset turns.

FY24 ROCE is −208%.

Why the return is what it is — the wiring (FY25): 6,600.0% net margin × 0.03× asset turns × −0.13× balance-sheet leverage ≈ −25.7% on equity. Margin is doing the heavy lifting; leverage is modest — this is an earned return, not a borrowed one.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is −0.69.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Essar Shipping Ltd's net worth is negative — it owes more than it owns — so a debt-to-equity ratio is not meaningful here. Operating profit covers the interest bill −1×. Over 5 years borrowings went from ₹4,641 Cr to ₹1,631 Cr. Capital spending ran ₹169 Cr across the last 3 of those years.

FY25: borrowings of ₹1,631 Cr against equity of ₹−2,380 Cr — net worth is NEGATIVE: the company owes more than it owns, so a debt-to-equity ratio is not meaningful (it just goes negative). This is a balance sheet under water. Operating profit covers the interest bill −1×. Over 5 years borrowings went from ₹4,641 Cr to ₹1,631 Cr while capital spending ran ₹169 Cr in just the last 3 — the build-out is being paid for out of cash, not debt.

→ Who owns this, and are they adding or leaving? Next: the register is quiet.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

No holder of Essar Shipping Ltd moved a full percentage point over the last two years — the register is quiet. Foreign institutions moved +0.0 points over the same window, to 0.0%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: +0.0 points over 8 quarters to 73.8%; Foreign institutions: +0.0 points over 8 quarters to 0.0%; Domestic institutions: +0.0 points over 8 quarters to 0.0%.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Essar Shipping Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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