Shares of Great Eastern Shipping Company Ltd. surged nearly 4% in Monday's trade after Nomura initiated coverage on the shipping stock with a ‘Buy' rating and a target price of Rs 1,965 per share.
Nomura's target is based on GE Shipping's strong cash position, disciplined capital allocation and ability to compound its net asset value through shipping cycles.
The stock is currently trading at Rs 1,556.8 apiece on the NSE, gaining around 4% from its previous close at Rs 1,497.2. Nifty 50, in the meantime, has declined more than 1.3%, reflecting the negative sentiment across the Indian domestic market.
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Nomura's Take On GE Shipping Company
Nomura analyst Bineet Banka described the company as a “consistent compounder in a deep cyclical business”, while noting that the stock trades at a discount to its net asset value.
The brokerage also stated that the shipping company has a cash pile of around Rs 8,000 crore as of the June quarter, equivalent to roughly 30% of its NAV and about 38% of its market capitalisation.
The brokerage believes this provides the company with significant financial flexibility to fund its next phase of fleet expansion. This could include the potential to double its existing fleet when the shipping cycle turns negative.
Nomura also highlighted that the shipping company has a track record of capital allocation across shipping cycles. The company has historically bought vessels when asset values were depressed, sold assets during stronger markets, maintained low leverage, and returned surplus cash to shareholders.
The brokerage also noted that GE Shipping's NAV grew at a CAGR of roughly 27% between FY21 and FY26, driven by operating cash flow generation and higher asset values during a strong global shipping cycle.
Also Read: GE Shipping's Rs 8,000 Crore Cash Pile Puts Fleet Expansion In Focus; Nomura Initiates With 'Buy'
GE Shipping Company Share Price Performance
The shipping giant has been in focus over a prolonged period as the stock has delivered multibagger returns over the past few years, gaining more than 340.9%.
Over the past year, the stock has delivered a return of around 56.7%, while in 2026 so far, the stock has rallied almost 40%. In the past month alone, the stock jumped 16.4% as well.
Currently, the stock is trading at a price-to-earnings multiple of 5.7 times, with a total market cap of Rs 22,213.14 crore.
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