Top 5 shipping stocks in India to add to your 2025 watchlist
As tensions escalate in the Middle East—particularly around the Strait of Hormuz—Indian shipping stocks have seen a sharp uptick in recent days, driven by expectations of a spike in global freight rates.
The market's reaction follows reports of a potential disruption in one of the world's most crucial maritime trade routes. This comes after a US strike on Iranian nuclear sites and Iran's Parliament proposing the closure of the strait in response—though no final decision has been made.
The Baltic Dry Index (BDI), which tracks global dry bulk shipping rates, is already showing signs of weakness. It dropped 3.5% on Friday and over 13% in just a week, signalling softer demand.
With all eyes on the sector, here are five Indian shipping stocks to watch in 2025 as the geopolitical storm unfolds.
Read this | India on track to make Chabahar preferred port of call in Iran for trade with Central Asian nations, says shipping secy
These stocks have been selected from Equitymaster's screener for Best Shipping Stocks in India.
#1 Mazagon Dock Shipbuilders
Mazagon Dock Shipbuilders Limited (MDL), Mumbai, is one of India's leading shipyards. Starting as a small dry dock, MDL has grown into a prominent player in the shipbuilding space.
The company specializes in constructing and repairing warships and submarines for the Ministry of Defence, as well as commercial vessels.
It is the only Indian shipyard to have built destroyers and conventional submarines for the Navy, among the first to manufacture Veer- and Khukri-class corvettes, and a lead builder of four Nilgiri-class stealth frigates. It is also the only shipyard to have been granted Navratna status.
Since 1960, MDL has built a total of 802 ships, including 28 warships—ranging from advanced destroyers to missile boats—and delivered 7 submarines, significantly bolstering India's underwater defence capabilities.
In addition to warships and submarines, MDL has also constructed a variety of military support vessels, including cargo ships, supply ships, and multipurpose support vessels.
As of FY25, the company's order book stands at ₹380 billion.
Looking ahead, Mazagon Dock Shipbuilders plans to invest ₹50 billion over the next 4–5 years to expand its infrastructure, which includes developing a graving dry dock and upgrading its Nhava Yard.
In FY26, ₹5 billion will be allocated for capital expenditure, with ₹3.5 billion directed toward completing a floating dry dock.
The company aims to maintain a PBT margin of 12–15% for FY26.
#2 Cochin Shipyard
Cochin Shipyard Limited (CSL), incorporated in 1972, is one of India's most modern and advanced shipyards.
It plays a leading role in constructing all kinds of vessels and in carrying out repairs and refits—including periodic upgrades and life extensions.
CSL has built and repaired some of the largest ships in India and recently delivered the prestigious Indigenous Aircraft Carrier to the Indian Navy.
The company's expertise extends from building bulk carriers to advanced technology-driven ships such as platform supply vessels and anchor handling tug supply vessels, with a strong focus on warships for the Navy.
It made history by constructing INS Vikrant, India's first indigenous aircraft carrier and the largest warship ever built in the country.
As of September 2024, CSL's order book stood at ₹225 billion, with 70% from the defence sector, 15% from commercial exports, 6% from domestic commercial orders, and 9% from its subsidiaries.
The company plans to expand shipbuilding and repair capacity, focus on green technologies, and diversify into new markets like renewable energy.
#3 Garden Reach Shipbuilders and Engineers
Garden Reach Shipbuilders and Engineers (GRSE) primarily caters to the shipbuilding needs of the Indian Navy and Indian Coast Guard.
Its portfolio includes frigates, missile corvettes, anti-submarine warfare corvettes, survey vessels, and offshore patrol vessels, among others.
Over the years, GRSE has also delivered various boats, pontoons, and barges.
The company operates three shipbuilding facilities in Kolkata. Ship construction takes place at the Main Works Unit and the Rajabagan Dockyard.
On 9 June 2025, GRSE signed two memorandums of understanding (MoUs) during an official delegation visit to Sweden and Denmark.
One MoU was signed with Berg Propulsion in Sweden—a global leader in the development, manufacture, and supply of marine propulsion systems.
Looking ahead, the company expects its order book to cross ₹400 billion by the end of FY26.
#4 Shipping Corp. of India
Shipping Corp. of India (SCI) is the largest Indian shipping company in terms of capacity, with a diversified fleet profile spanning the transportation of both goods and passengers.
The company operates across four key segments: Liner, Bulk, Tanker, and Technical & Offshore services. The Liner segment handles break-bulk and container transport, while the Bulk segment comprises dry bulk carriers.
The Tanker segment includes vessels that transport crude oil, petroleum products, and gas. The Technical & Offshore segment encompasses company-owned offshore vessels, those managed on behalf of other organizations, technical consultancy services, as well as passenger and research vessels operated under external mandates.
#5 GE Shipping
The Great Eastern Shipping Co. (GE Shipping) is India's largest private-sector shipping firm, operating in two main segments: shipping and offshore services.
In shipping, GE transports crude oil, petroleum products, gas, and dry bulk commodities.
Its offshore operations, managed through its subsidiary Greatship, support oil companies in exploration and production.
With a broad client base spanning oil companies, refineries, manufacturers, and miners, GE Shipping is a key player in the maritime sector.
Looking ahead, the company has announced a $160 million investment to renew its fleet.
Conclusion
India is charting a bold course toward becoming self-reliant in the shipping sector. The government is actively encouraging partnerships between Indian firms and major global shipyards.
Shipping Minister Sarbananda Sonowal recently stated that the government is focusing on bringing European innovation to India while also inviting major Asian shipbuilders to set up operations in the country.
Before making investment decisions, it's essential to conduct thorough research on company financials and corporate governance to ensure alignment with your financial goals and risk appetite.
Happy Investing.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com
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