Archive · 28 Sep 2026
Nomura Sees 28% Upside in Great Eastern Shipping
Nomura is optimistic about Great Eastern Shipping’s future.
It thinks the company’s share price could rise nearly 28%.
Nomura gave the stock a Buy rating and set a target price of Rs 1,965.
The brokerage likes how the company buys ships when prices are low and sells them when prices are high.
Great Eastern Shipping also has about Rs 8,000 crore in cash.
This money could help it greatly expand its fleet without borrowing or raising new capital.
Nomura expects the company to generate strong cash flows over the next few financial years.
However, shipping rates could fall if global trade improves or too many new tankers enter the market.
High oil prices, delays in adding ships, and a stronger rupee are also risks.
Nomura initiated coverage of Great Eastern Shipping with a Buy rating and a Rs 1,965 target price.
The target implies nearly 28% upside from the company’s current share price.
Nomura highlighted the company’s disciplined capital allocation and Rs 8,000 crore cash balance.
The brokerage expects operating cash flow of Rs 38 billion to Rs 49 billion during FY27-FY29.
Key risks include weaker ton-mile demand, tanker oversupply, high oil prices, fleet expansion delays, and rupee appreciation.
- Who
- Nomura and Great Eastern Shipping Co.
- What
- Nomura initiated coverage with a Buy rating and a Rs 1,965 target price, implying nearly 28% upside.
- When
- The positive outlook was reported on September 28, with projections covering FY27-FY29.
- Where
- The analysis concerns Great Eastern Shipping’s stock and global shipping markets.
- Why
- Nomura believes the company’s cash reserves and disciplined fleet investment could help it benefit from lower asset prices despite shipping-rate concerns.
Nomura’s Positive View
Downside Risks
Shipping-rate outlook
Nomura’s Positive View
Nomura believes concerns about an eventual shipping-rate downcycle may be exaggerated.
Downside Risks
Shipping rates could come under pressure if ongoing conflicts are resolved, reducing ton-mile demand.
Fleet expansion
Nomura’s Positive View
Great Eastern Shipping could use its cash reserves to expand its fleet at low prices without raising external capital.
Downside Risks
Fleet expansion carries execution risks, while a strong tanker order book could create oversupply.
Earnings outlook
Nomura’s Positive View
Nomura expects strong operating cash flow and assumes the company will add 10 vessels in each of FY28 and FY29.
Downside Risks
Nomura’s forecasts remain exposed to 50% lower spot rates for crude tankers, sustained high oil prices, and rupee appreciation.
- Nomura rating
- Buy
- Target price
- Rs 1,965
- Implied upside
- Nearly 28%
- Cash balance
- Rs 8,000 crore as of Q1
- Expected operating cash flow
- Rs 38 billion to Rs 49 billion during FY27-FY29
- Assumed fleet expansion
- A 50% increase over FY26-FY29
- Recent share performance
- Up nearly 15% in one month and around 9% in six months