On the international trade, the global financial slowdown weighed and strikes the shipping industry heavily in the last quarter of financial year 2009. Shipping Corporation of India (SCI) registered lower profits multiple due to volatility in prices.

In Shipping PSU major, the government has 80.12% stake. As well, an interest coverage ratio of SCI is above 17 for financial year 2009 and is greater than an interest coverage ratio of the largest private sector player, GE Shipping. As well, present dividend yield of SCI at 5.4% which is greater than dividend yield of GE Shipping.

SCI's presently owns fleet comprising of 78 vessels with a total capacitance of 5.03 million dead weight tones (dwt). As well, the company has spread about 70% of its fleet capacitance for the tanker section.

To stay competitive in its bid, SCI is sharply flourishing fleet capacity as it has 31 vessels on order at a total cost of about Rs 7,500 crore and these extra vessels are awaited to be delivered in stages over the next 3 years. This elaboration will contribute approximately 2.19 million dwt of fleet capacity to SCI.

About 60% of its capacity of SCI is on long-term contracts. SCI has about 40% of its capacity that is exposed to volatile spot freight rates.

SCI deals with a P/E of 5.3, at Rs 119.85 and could be regarded as a long term value buy where as GE Shipping deals with a P /E of 3.3, and Mercator Lines deals with a P/E of 7.7.

Nevertheless, the SCI's dividend yield is greater than that of GE Shipping.