Smooth Sailing For Shipping Corp? SEBI RA Priyank Sharma Bullish On Stock’s Short To Medium-Term Prospects

The stock’s bullish technical charts are backed by strong overall fundamentals, despite a weak Q4

Technical charts indicate a short-to-mid-term upside for Shipping Corporation of India (SCI.NSE) stock, according to SEBI-registered analyst Priyank Sharma.

Sharma recommended accumulating the stock at the current market price and on dips up to ₹175. He has outlined a short-term target of ₹290 and expects mid-term upside potential toward ₹400, ₹530, and possibly ₹630, with a stop loss advised on any significant break below ₹130.

At the time of writing, the stock was up 12.3% at ₹231.7.

Sharma observed that SCI has been in an uptrend since late 2019, following a classic double-bottom reversal. The rally gained momentum after a breakout above the long-standing resistance of ₹171.61, an all-time high from 2008.

The analyst noted that the stock peaked at ₹384.20 in July 2024 before entering a 9-month correction that saw a retest of the ₹170 support zone.

Over the past three months, a strong bounce from this level has reaffirmed support and revived bullish momentum.

Sharma noted that the stock is continuing its uptrend, with monthly chart patterns pointing to strong upside potential in the coming months, emphasizing the need to maintain a long-term perspective.

Despite a soft fourth quarter, Sharma believes SCI’s fundamentals remain strong. 

The stock is currently trading at a price-to-earnings ratio (P/E) of 11.6x, has a low debt-to-equity ratio of around 0.25x and return on equity (ROE) of about 10.5%.

SCI reported a 24.2% year-on-year jump in consolidated net profit for FY25, while its revenue from operations grew over 11% for the same period.  

Retail sentiment on Stocktwits remained ‘bullish’, amid ‘high’ message volumes.

Year-to-date, shares of the company rose 1.3% as of Thursday’s close.

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