Single-Digit PE Stock: Shipping company declares 72% dividend and approves Rs 425 crore loan to subsidiary for ECB prepayment

The Great Eastern Shipping Company Ltd. (GE Shipping) has declared an interim dividend for FY 2025-26 of Rs 7.20 per share, representing a 72 per cent payout, to its equity shareholders. The record date for determining eligible shareholders for this dividend is August 06, 2025, with the payment scheduled on or after August 22, 2025. This declaration reflects the company's commitment to returning value to its shareholders.

Furthermore, GE Shipping's Board of Directors has approved granting a term loan of up to Rs 425 crore to its wholly-owned subsidiary, Greatship (India) Limited (GIL). This unsecured inter-corporate loan is intended to enable GIL to prepay its existing External Commercial Borrowing (ECB) facility, which has an outstanding amount of USD 70.9 million and is repayable by March 2028. This strategic move is expected to result in substantial savings for the group due to the more favourable terms of the inter-corporate loan, which includes an interest rate of 7.50 per cent per annum payable quarterly, and a 2.5-year term with a prepayment option for GIL. The loan agreement will be executed in due course and will not include any special rights regarding director appointments or changes in GIL's capital structure.

About the Company

The Great Eastern Shipping Company Ltd. (GE Shipping), founded in 1948, is India's largest private sector shipping company, specializing in the transportation of liquid (crude oil, petroleum products, gas) and solid bulk commodities. Through its two main business segments—shipping and offshore—GE Shipping operates a diverse fleet and also provides offshore exploration and production services via its wholly-owned subsidiary, Greatship (India) Limited. The company is publicly traded on both the BSE and NSE, with a strong international presence and a focus on operational efficiency and sustainable growth.

According to Quarterly Results (Q1FY26), the company reported net sales of Rs 1,201 crore and net profit of Rs 504 crore. In its annual results FY25), the company reported net sales of Rs 5,323 crore and net profit of Rs 2,344 crore.

The shares of the company have a PE of 8x, an ROCE of 14 per cent and an ROE of 14 per cent. The stock is up by 17.4 per cent from its 52-week low of Rs 797.25 per share and gave multibagger returns of over 300 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.