SEAMEC Ltd (SEAMECLTD)

FairStock Score: 48/100 — MIXED

Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Sales growth of 112.30% and profit growth of 1000% reflect a powerful cyclical upswing.
• Latest quarter sales of ₹317 Cr and net profit of ₹100 Cr confirm strong near-term momentum.
• Piotroski F-Score of 7/9 points to healthy recent profitability, leverage and operational efficiency.
• Debt/equity of 0.38 is moderate for the capital-intensive shipping industry.
• Promoters own 72.72%, aligning their interests with minority shareholders.

Concerns

• At ₹1,544, P/B of 4.31 versus book value ₹358.29 is a rich price for a cyclical shipping company.
• ROCE of 8.60% is modest; the 23.12% ROE gap suggests leverage or one-off gains are flattering equity returns.
• No dividend (0.00% yield), so investors rely entirely on share price appreciation.
• Shipping is a commodity business; current earnings at cyclical peak may normalize sharply.

AI Analysis

I try not to get intoxicated by a 1,000% profit jump. I look for durable businesses, not good news. SEAMEC's sales grew 112% and latest quarter ₹317 Cr sales with ₹100 Cr profit, but shipping is inherently cyclical—today's tide can reverse. At ₹1,544, market cap ₹3,347 Cr, I pay 17.54 times earnings and 4.31 times book. Book value is ₹358; that is a large premium for a business whose return on capital employed is only 8.60%. The 23.12% ROE looks nice, but I want to know how much is borrowed; D/E 0.38 is acceptable, but shipping earnings are volatile. The Piotroski score of 7 suggests recent financial health, and promoter holding 72.72% aligns owners with investors. Yet there is no dividend—zero yield—so my only return depends on Mr. Market's moods. In a good year, PEG of 0.03 is absurd; it simply reflects a spike from a low base. I prefer normalized earnings. If the recent ₹317 Cr quarterly sales can be annualized, the stock may not be outrageous, but shipping rates are not a moat. SEAMEC is a price-taker with no pricing power. The low ROCE relative to ROE is a caution: leverage or one-off gains may be boosting equity returns. I would wait for evidence the company can earn attractive returns across the cycle and pass cash to shareholders before paying 4 times book.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer