Top 5 shipping stocks in India to add to your 2025 watchlist
Geopolitical Tensions Impact Shipping Stocks in India
Recent geopolitical tensions have sent ripples through the global shipping market, particularly following a U.S. strike on Iranian nuclear sites. In response, Iran’s Parliament has proposed closing a critical maritime trade route, raising concerns among investors. The Baltic Dry Index, which measures shipping rates, has already shown signs of decline, dropping 3.5% on Friday and over 13% in a week. As the situation unfolds, investors are closely monitoring key Indian shipping stocks poised for growth in 2025.
Market Overview and Key Players
The current geopolitical climate has created uncertainty in the shipping industry, particularly affecting the Baltic Dry Index (BDI). This index, which tracks global dry bulk shipping rates, has experienced a significant downturn, indicating a potential decrease in demand for shipping services. Investors are now looking for opportunities within the Indian shipping sector, which is expected to play a crucial role in the maritime landscape.
Among the notable players in this sector are five Indian shipping companies that stand out for their robust operations and growth potential. These companies have been selected based on their performance and future prospects, as outlined by Equitymaster’s screener for the best shipping stocks in India.
Mazagon Dock Shipbuilders
Mazagon Dock Shipbuilders Limited (MDL), based in Mumbai, is a leading shipyard specializing in the construction and repair of warships and submarines for the Indian Ministry of Defence. Established in 1960, MDL has built a total of 802 ships, including 28 warships and 7 submarines, significantly enhancing India’s naval capabilities. The company holds the distinction of being the only Indian shipyard to construct destroyers and conventional submarines.
MDL’s current order book stands at ₹380 billion, and the company plans to invest ₹50 billion over the next four to five years to expand its infrastructure. This includes the development of a graving dry dock and upgrades to its Nhava Yard. For FY26, MDL aims to maintain a profit before tax (PBT) margin of 12-15%, with a capital expenditure allocation of ₹5 billion.
Cochin Shipyard
Cochin Shipyard Limited (CSL), established in 1972, is recognized as one of India’s most advanced shipyards. The company has made significant contributions to the Indian Navy, including the delivery of the Indigenous Aircraft Carrier, INS Vikrant. CSL’s expertise spans various vessel types, from bulk carriers to advanced warships.
As of September 2024, CSL’s order book is valued at ₹225 billion, with a significant portion coming from the defence sector. The company is focused on expanding its shipbuilding and repair capacity while also exploring green technologies and diversifying into renewable energy markets.
Garden Reach Shipbuilders and Engineers
Garden Reach Shipbuilders and Engineers (GRSE) primarily serves the Indian Navy and Coast Guard, offering a range of vessels including frigates and offshore patrol vessels. With three shipbuilding facilities in Kolkata, GRSE has established itself as a key player in the Indian maritime sector.
Recently, GRSE signed two memorandums of understanding (MoUs) with Swedish and Danish companies to enhance its capabilities in marine propulsion systems. The company anticipates its order book will exceed ₹400 billion by the end of FY26, reflecting its strong position in the market.
Shipping Corporation of India
The Shipping Corporation of India (SCI) is the largest shipping company in India by capacity, operating a diversified fleet that includes goods and passenger transport. SCI’s operations are divided into four segments: Liner, Bulk, Tanker, and Technical & Offshore services, catering to a wide range of maritime needs.
Great Eastern Shipping
Great Eastern Shipping Co. (GE Shipping) is India’s largest private-sector shipping firm, focusing on shipping and offshore services. The company transports crude oil, petroleum products, and dry bulk commodities. GE Shipping is also involved in offshore operations through its subsidiary, Greatship, supporting oil exploration and production.
Looking ahead, GE Shipping has announced a significant investment of $160 million to renew its fleet, positioning itself for future growth in the maritime industry.
