Essar Shipping — Peer Comparison

How the peer fair value is calculated and which companies were used as benchmarks.

Peer selection

Peers are selected from the same Ports, logistics & shipping industry. 8 companies were matched as valid comparables.

Same-industry peers share similar business models, cost structures, and growth prospects — making them the most appropriate benchmarks for valuation multiples.

Peer comparison table

Ports, logistics & shipping · 8 peers · sector medians shown

Better than medianWorse than median

Company	Mkt Cap	P/E	P/B	EV/EBITDA	ROE	Net Margin	Rev CAGR 3y
Essar Shipping ESSARSHPNG · you	₹351 Cr	—	—	—	5.4%	-6295.5%	-69.2%
Sector median	—	21.3×	2.3×	7.5×	4.5%	0.8%	6.7%
Mahindra Logistics Limited MAHLOG	₹3,079 Cr	1596.3×	3.4×	7.5×	0.2%	0.0%	10.9%
VRL Logistics Limited VRLLOG	₹2,672 Cr	21.3×	4.4×	4.3×	20.7%	7.4%	6.7%
Allcargo Logistics Limited ALLCARGO	₹1,198 Cr	251.4×	2.6×	4.4×	1.4%	0.4%	-51.5%
Ritco Logistics Limited RITCO	₹763 Cr	25.0×	2.5×	8.2×	9.9%	2.4%	25.9%
Snowman Logistics Limited SNOWMAN	₹634 Cr	118.6×	1.6×	—	1.3%	0.0%	—
Om Freight Forwarders Limited OMFREIGHT	₹365 Cr	20.9×	1.6×	11.0×	7.5%	3.2%	0.4%
TRANSWORLD SHIPPING LINES LIMITED TRANSWORLD	₹343 Cr	-10.5×	0.4×	—	-4.1%	1.3%	—
Tiger Logistics (India) Limited TIGERLOGS	₹271 Cr	14.3×	2.2×	—	15.3%	0.0%	—

Peer comparison verdict

Essar is fairly valued relative to sector peers — trading near the sector median on key multiples (P/E ~21.3×, EV/EBITDA ~7.5×). Focus on execution quality and earnings trajectory from here.

Why median? Why these weights?

Median over mean: The sector median is used instead of the average because valuation multiples have extreme outliers — one high-growth company at 200× P/E would dramatically skew a mean. The median gives the middle value in the peer set, which better represents typical pricing.

Sector-specific weights: The weight given to each method reflects what matters most in this sector. For banks, P/B dominates because their value is tied to book assets. For IT companies, P/E carries the most weight because earnings quality matters more than asset base. For capital-intensive businesses, EV/EBITDA accounts for varying debt levels across peers and removes financing structure bias.

Limitations of peer comparison

Peer comparison assumes comparable companies are truly comparable — which is never perfectly true. Sector classifications can be imperfect: a conglomerate classified as "IT" may also have significant manufacturing revenue. Small peer counts (below 5) reduce confidence, as a single outlier can skew the sector median. When the entire sector is broadly expensive, peer comparison will show even an expensive stock as "fairly valued" relative to its peers.

The peer fair value shown is an algorithmic estimate based on publicly available financial data. It is not investment advice or a recommendation to buy, sell, or hold any security. Please consult a SEBI-registered investment adviser before making any investment decision.