Recently, the Union Budget 2025 was announced, and it emphasised significantly improving the maritime sector in India. The reforms introduced in this Budget can provide financial, logistical and technical support to the shipping industry.
The government has announced the establishment of ₹25000 crore Maritime Development Fund along with the ‘Shipbuilding Financial Assistance Policy’. Due to this, post-Budget, the shipping industry stocks surged by nearly 5%-6%. Investors may find this as a suitable period for diversifying their portfolios into shipping stocks.
However, the shipping stocks can be classified into 2 parts as follows:
- Core Shipping – These companies mainly deal in maritime transportation, oil and gas exploration, cargo, etc.
- Shipbuilding – These companies build shipping vessels like ships and submarines.
Explore this detailed study on shipping industry stocks to understand its financials, compare with peers, and seek potential investment opportunities.
Also, read Post Budget 2025: Five Sectors to Watch Out For
Top Shipping Stocks (Maritime Transportation)
Here are the top 5 core shipping industry stocks, curated based on their market capitalisation and ranked according to their 1-year return on equity as of February 5, 2025.
| Particulars | Market Capitalisation(in ₹ crores) | Return on Equity(1 year) | Price to Earning Ratio | Interest Coverage Ratio | Debt to Equity Ratio |
| GE Shipping | 13,282.3 | 21.0% | 4.5 | 13.3 | 0.2 |
| SCI Ltd | 9,125.0 | 8.4% | 9.1 | 6.8 | 0.3 |
| SEAMEC | 2,634.6 | 13.8% | 16.5 | 9.8 | 0.2 |
| Essar Shipping | 674.5 | 0.0% | 1.1 | 1.2 | 0.0 |
| Global Offshores | 260.2 | (22.9)% | 5.9 | (1.1) | 0.4 |
Source: Screener
- Great Eastern Shipping Company Ltd
Established in 1948, the company is one of the oldest and largest private shipping companies in the country. Its network of 39 vessels and 26 tankers mainly operates in the transportation of crude oil, gas, bulk dry commodities, etc. Moreover, its subsidiary is carrying out offshore oil exploration and production.
The company’s share is trading at ₹938.4 as of February 4, 2025. The crude oil demand and dynamic geo-political landscape can help the company expand its operations in the upcoming years.
Financial Performance
| Particulars | 9M FY 2025(in ₹ crores) | FY 2024(in ₹ crores) | FY 2023(in ₹ crores) |
| Revenue | 3,790 | 4,164 | 4,834 |
| Operating Margin | 54.3% | 62.2% | 54.7% |
| Networth | – | 10,346 | 8,520 |
Source: Quarterly and Annual Reports
Key Performance Highlights
- Debt levels have significantly reduced by nearly 42% in the last 5 years.
- The company declared a dividend of ₹8.1 in Q3 FY 2025. The dividend is declared for the 12th consecutive quarter.
- GE Shipping has a lower P/E than the industry median of 19.2, which indicates potential scope for valuation.
- A lower order book-to-fleet ratio below 30% can indicate better vessel overall vessel supply in the upcoming years.
- SEAMEC Ltd
It is one of the key contributors to offshore oil and gas exploration on the west coast of India. Moreover, it provides services of subsea inspection, light construction, repair and maintenance. The company is a subsidiary of HAL offshore and holds one of the largest fleets of vessels in India. Its shares are trading at ₹1,014.3 as of February 4, 2024.
Financial Performance
| Particulars | 6M FY 2025(in ₹ crores) | FY 2024(in ₹ crores) | FY 2023(in ₹ crores) |
| Revenue | 319 | 729.00 | 437 |
| Operating Margin | 20.90% | 18.60 | 7.80% |
| Networth | – | 912 | 791 |
Source: Quarterly and Annual Reports
Key Performance Highlights
- The speciality of SEAMAC lies in its fleet of diving support vessels that can cater to a wide range of services.
- SEAMAC has 5 subsidiaries in chemical export, tunnel construction, bulk transportation, etc.
- The operating cash flow for the company has fluctuated to nearly 60% lows in recent years.
- Shipping Corporation of India Ltd
Established in 1961, the company provides a wide range of services such as liquid/dry bulk vessels, crude oil tankers, passenger-cum cargo vessels, etc. It is one of the ‘NAVRATNAs’ of the Government of India. The company’s share has experienced significant volatility and is trading at ₹192.4 as of February 4, 2025. After the recent Budget 2025, the shipping corporation of India was in the news due to a 5% surge in its share price.
Financial Performance
| Particulars | 6M FY 2025(in ₹ crores) | FY 2024(in ₹ crores) | FY 2023(in ₹ crores) |
| Revenue | 2,965 | 5,046 | 5,794 |
| Operating Margin | 22.9% | 14.8% | 15.8% |
| Networth | – | 7,539 | 6,902 |
Source: Quarterly and Annual Reports
Key Performance Highlights
- In terms of capacity, SCI Ltd is the largest company.
- The company’s quarterly profits have been fluctuating since Q1 FY 2024.
- The shares of SCI Ltd are trading at a lower P/E, which indicates potential for better returns in the upcoming years.
- The company’s operating cash flow has significantly decreased in FY 24, but the net cash flow is positive.
Peer Analysis
Analyse these shipping stocks comparatively to select the most suitable investment for the portfolio.
Particulars | PEG ratio | Good/ Bad | NPM | Good/ Bad | EV/ EBITDA | Good/ Bad |
| GE Shipping | 0.0 | 👍 | 45.3% | 👍 | 2.6 | 👍 |
| SCI Ltd | 0.2 | 👍 | 11.2% | 👍 | 5.2 | 👍 |
| SEAMEC | 2.3 | 👎 | 16.2% | 👍 | 9.1 | 👍 |
| Essar Shipping | 4.4 | 👎 | (39.9%) | 👎 | 17.1 | 👎 |
| Global Offshores | 0.5 | 👍 | (647%) | 👎 | 30.1 | 👎 |
Explore more: Maritime industry: How India’s shipping and port industry is making waves
Top Shipbuilding Stocks
Here are the top 5 shipbuilding stocks, curated based on their market capitalisation and ranked according to their 1-year return on equity as of February 5, 2025.
| Particulars | Market Capitalisation(in ₹ crores) | Return on Equity(1 year) | Price to Earning Ratio | Interest Coverage Ratio | Debt to Equity Ratio |
| Mazagaon Dock | 89,191 | 35.1% | 34.7 | 689.6 | 0.0 |
| Cochin Shipyard | 37,761 | 17.2% | 42.6 | 41.9 | 0.1 |
| Garden Reach Shipbuilder | 17,529 | 22.2% | 44.3 | 44.8 | 0.0 |
| Knowledge Marine | 2,195 | 25.8% | 56.8 | 7.4 | 0.5 |
| VMS Industries | 104 | 10.3% | 17.2 | 2.7 | 0.2 |
Source: Screener
- Mazagaon Dock Shipbuilders Ltd
The company carries its massive experience of 64 years in the industry and specialises in defence vessel building. It mainly builds missile boats, submarines, subsea pipes, offshore patrol vessels, destroyers, etc. The shares of this company are trading at ₹2,196.2 as of February 4, 2025. The recent Maritime Development Fund announced in the Budget 2025 can make a positive impact on the company’s growth trajectory.
Financial Performance
| Particulars | 6M FY 2025(in ₹ crores) | FY 2024(in ₹ crores) | FY 2023(in ₹ crores) |
| Revenue | 5,114 | 9,466 | 7,827 |
| Operating Margin | 21.6% | 25.6% | 18% |
| Networth | – | 6,243 | 4,760 |
Source: Quarterly and Annual Reports
Key Performance Highlights
- In the first half of FY 2025, the company’s order book has surged by 3.36%.
- Under the ‘Make-in-India’ initiative, the company is focusing on the indigenous building of several ship components.
- Over the years, the company has significantly reduced its debt levels by 56% in the past decade.
- The earnings per share for the company has surged by nearly 73% in FY 2024 and the growth prospects are strong.
- Garden Reach Shipbuilders and Engineers Ltd
Based in Kolkata, the company mainly operates in defence shipbuilding. It has mainly built extensive frigates, landing ship tanks, offshore patrol vessels, hovercraft, cargo ferries, etc. The company’s stock is trading at ₹1,521.7 as of February 4, 2025.
Financial Performance
| Particulars | 9M FY 2025(in ₹ crores) | FY 2024(in ₹ crores) | FY 2023(in ₹ crores) |
| Revenue | 3,433 | 3,592 | 2,561 |
| Operating Margin | 11.3% | 13.7% | 12.1% |
| Networth | – | 1,673 | 1,413 |
Source: Quarterly and Annual Reports
Key Performance Highlights
- The company has signed several contracts with different government ministries regarding shipbuilding, export, survey vessels, etc.
- The entity is building futuristic indigenous instruments like shipborne unmanned aerial vehicles (such as drones).
- The revenue growth is nearly 159% in recent years.
Peer Analysis
Analyse these shipbuilding stocks comparatively to select the most suitable investment.
Particulars | PEG ratio | Good/ Bad | NPM | Good/ Bad | EV/ EBITDA | Good/ Bad |
| Mazagaon Doc | 1.1 | 👍 | 20.4% | 👍 | 22.5 | 👍 |
| Cochin Shipyard | 3.7 | 👎 | 22.3% | 👍 | 27.2 | 👎 |
| Garden Reach Ship | 1.7 | 👎 | 9.5% | 👎 | 24.1 | 👎 |
| Knowledge Marine | 0.83 | 👍 | 23.7% | 👍 | 41.5 | 👎 |
| VMS Industries | 0.73 | 👍 | 2.3% | 👎 | 7.4 | 👍 |
Summing up!
The recent push by the Budget 2025 announcements can be a significant factor in the growth journey of the Indian shipping industry. The industry has mainly 2 categories: maritime transport and shipbuilding. Investors can explore the top shipping stock from these categories to seek potential diversification for their portfolio.
Check this out! Smart Investment Strategies for Budget 2025
