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Mint
5 days ago
- Business
- Mint
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
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Business Standard
17-06-2025
- Business
- Business Standard
SCI, GE Shipping in focus as Baltic Dry Index up 47% in 1-mth; time to buy?
The Baltic Dry Index now quotes at a 8-month high. Technical charts hint at a potential 36 per cent upside for select shipping stocks like SCI, Dredging and Seamec. Details here Rex Cano Mumbai Listen to This Article Shares of shipping related companies are likely to be in focus as the Baltic Dry Index - the shipping and trade index - has surged to a 8-month high at 1,968. The index has rallied as much as 47 per cent from levels of 1,338 in the last one month. What is the Baltic Dry Index & its impact? The Baltic Dry Index (BDI) represents the average price for shipping dry bulk materials via sea routes, and is often considered as a leading indicator of economic activity for it reflects the supply and demand for raw materials
Business Standard
13-06-2025
- Business
- Business Standard
GE Shipping, SCI soar up to 12% on heavy volumes in weak market
Shares of shipping companies like Shipping Corporation of India (SCI) and Great Eastern Shipping Company (GE Shipping) have soared up to 12 per cent on the BSE in Friday's intra-day trade amid heavy volumes in an otherwise weak market. The surge in stocks came as the Baltic index extended its rally to hit an over-eight-month high. Among the individual stocks, SCI rallied 12 per cent to ₹230.50 on the BSE in intra-day trade. The average trading volumes on the counter jumped over fivefold. A combined 25.97 million shares, representing 5.6 per cent of the total equity of SCI, changed hands on the NSE and BSE. Baltic index extends rally; hits over eight-month high According to a Reuters report, the Baltic Exchange's dry bulk sea freight index extended gains to scale a more than eight-month peak due to higher rates across both large and small vessel segments. The main index was up 166 points, or 9.6 per cent, at 1,904, its highest since October 7. The escalating tension in the Middle East is sparking fears of global trade disruptions and rising tanker rates. The Baltic Exchange's dry bulk sea freight index measures shipping rates for vessels transporting dry bulk commodities. The Baltic Dry Index (BDI) is a number (in $) issued daily by the London-based Baltic Exchange. Not restricted to Baltic Sea countries, the index provides an assessment of the price of moving the major raw materials by sea. Taking in 23 shipping routes measured on a time charter basis, the index covers Handysize, Supramax, Panamax and Capesize bulk carriers carrying a range of commodities including coal, iron ore and grain. Dry bulk trade demand is generally driven by the global economic outlook. US, China reach agreement US President Donald Trump on Wednesday claimed that a trade deal with China has been finalised, pending final approval from both him and Chinese President Xi Jinping. In a post on Truth Social, Trump stated, 'Our deal with China has been finalised, pending final approval from President Xi and myself. As part of the agreement, China will supply, upfront, full magnets and any necessary rare earth materials.' CLICK HERE FOR FULL REPORT Crisil Ratings' view on GE Shipping GE Shipping is the largest private sector shipping company in India. The company operates two main businesses, tankers and dry bulk carriers, wherein it owns and operates 38 vessels (26 tankers and 12 dry bulk carriers) with a combined capacity of 3.04 million dead weight tonnage as of February 21, 2025. In February 2025, Crisil Ratings upgraded its rating on the non-convertible debentures (NCDs) of GE Shipping to 'Crisil AAA/Stable' from 'Crisil AA+/Positive'. The rating upgrade reflects Crisil Ratings' expectation that the company shall sustain its strong financial risk profile as supported by its sizeable net-worth, robust liquidity and low leverage amid healthy operating performance, resulting in strong cash accrual. Despite cyclicality in the operating performance of the shipping and offshore oilfields service businesses, the financial risk profile of GE Shipping is likely to remain strong over the medium term. Owing to its prudent risk management policy, the gearing (measured as a ratio of debt to equity) has remained below 1 time over the past 10 years, the rating agency said in its rationale.
Business Standard
13-06-2025
- Business
- Business Standard
Shipping stocks sail higher as Baltic Dry Index hits 8-month high
Shares of shipping companies were in high demand on Friday as freight rates surged sharply, lifting investor sentiment across the sector. The Baltic Dry Index (BDI), a global benchmark that tracks the cost of transporting dry bulk commodities like coal, iron ore, and grains, jumped 9.6% to 1,904, marking its highest level since October 7. The rally in BDI reflects strong activity in global trade routes. On the back of this, Shipping Corporation of India (SCI) (up 5.16%), Velox Shipping and Logistics (up 5%) and Great Eastern Shipping Company (up 2.63%) surged. A rising BDI typically boosts earnings potential for shipping companies as it directly translates into higher freight revenues per voyage.
Reuters
25-04-2025
- Business
- Reuters
Tariff turmoil puts premium on economic oddities
NEW YORK, April 25 (Reuters Breakingviews) - Erratic times call for quirky economic indicators. The White House's helter-skelter trade policy and U.S. government shakeup are making some of the conventional metrics tracked by investors less useful. In past crises, oddities like the Baltic Dry Index and coronavirus infection rates proved to be useful, but each era requires its own dashboard. This one is revisiting underwear and lipstick while adding rush-hour traffic and Canadian tourists. Central bankers and money managers have periodically studied everything from hemlines to Big Macs alongside unemployment and GDP growth to seek an edge in understanding economic trends. This week, the aviation industry attracted attention far beyond the usual plane-spotters. American Airlines (AAL.O), opens new tab and Alaska Air (ALK.N), opens new tab warned of softening travel, helping corroborate daily, opens new tab U.S. Transportation Security Administration updates on airport security figures. Extra insights come from various travel warnings following U.S. visitor detentions and declining numbers of Canadians driving home from their southerly neighbor. Real-time monitoring of metropolitan congestion tells another part of the story. During a recession, fewer people take cars to work and speed up trips for those who do. At peak times in places like Houston, opens new tab and Chicago, however, roads remain more clogged than usual, according to mapping technology developer TomTom. Similarly, a job postings barometer, opens new tab from Indeed indicates a slowdown, but nothing severe. And the Waste Paper Composite Index, opens new tab doesn't show signs of strain on the recycled paper market that often portend an economic slump. Google Trends, which tracks what users are exploring, has potentially more ominous results. Inquiries for 'recession' are rising fast, but even more alarming is the growing hunt for ' supply chain, opens new tab.' It's the sort of term typically reserved for logistics mangers and investing wonks, and the only time there was more web searches on the subject was October 2021. Then, ports were clogged with goods when an ebbing Covid-19 ignited trade and economic activity. Today's trade wars might have the opposite effect. Two popular alternative data points are also back in vogue. Women have spent more on makeup during hard times since the Great Depression, opens new tab, even as they save money elsewhere. Cosmetics magnate Leonard Lauder coined the 'lipstick index' to crystallize the idea that cheap luxuries make people feel better. The pandemic proved an exception because of the protective masks everyone was wearing, but it should be a reliable gauge again. Boxers and briefs can hold economic crystal balls, too, and were a targeted sales measure watched closely by former Federal Reserve Chairman Alan Greenspan. When times get tough, men are more inclined to make do with threadbare skivvies. To better understand unconventional cycles, it pays to look in strange places. For more insights like these, click here, opens new tab to try Breakingviews for free. Editing by Jeffrey Goldfarb and Pranav Kiran Breakingviews Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time. Sign up for a free trial of our full service at and follow us on Twitter @Breakingviews and at All opinions expressed are those of the authors.
