Best Shipping Stocks For Jan 2025: Shipping Corporation, Adani Ports and More- Based on 5Y CAGR

India’s Ports & Shipping sector plays a crucial role in the nation’s economic landscape, currently experiencing significant transformation driven by strategic government initiatives. In FY 2023-24, major ports successfully handled over 819 million metric tonnes of cargo, reflecting the sector’s expanding capacity.

To boost coastal shipping volumes by 2030, policies are being refined to encourage greater private sector participation, streamline regulations, and enhance the ease of doing business. Key infrastructure projects, such as dedicated freight corridors and the development of inland waterways, are enhancing multimodal connectivity, which is expected to significantly reduce transportation costs and further strengthen the logistics network.

Key Growth Drivers of Shipping Industry

• The government is strongly supporting the growth of the ports and shipping industry through key initiatives such as the Sagarmala Programme, Maritime India Vision 2030, and the National Monetization Pipeline. These programs are designed to modernize port infrastructure, enhance logistics efficiency, and drive investment into the sector.
• In addition, the government has introduced environmentally-focused initiatives, including the Harit Sagar Green Port Guidelines and the Green Tug Transition Program. These initiatives aim to promote sustainable practices, such as the use of renewable energy, emission reduction, and the adoption of green tugs at major ports.
• Furthermore, the government has enabled 100% Foreign Direct Investment (FDI) in port development, fostering increased global investment in the sector.

Best Shipping Stock Based on 5Y CAGR

Note: The stocks have been sorted based on 5Y CAGR and as of January 09, 2025

Overview of Best Shipping Stocks

Shipping Corporation of India Ltd

Shipping Corporation of India operates across the Liner segment, Bulk segment, and Technical and Offshore. The Shipping Corporation of India announced a remarkable 343% increase in its consolidated net profit, reaching ₹ 291.44 crore in Q2, up from ₹ 65.73 crore in the same period last year. The company’s operational revenue also saw a significant rise, growing by 32.7% to ₹ 1,450.76 crore for the quarter, compared to ₹ 1,093.2 crore in the previous year.

Key Metrics:

• Return on Equity (ROE): 8.49%
• Return on Capital Employed (ROCE): 7.43%

Great Eastern Shipping Company Ltd

Great Eastern Shipping Company Ltd, along with its subsidiaries is a major player in the Indian shipping and Oil drilling services industry. In Q2FY25, crude tanker earnings saw typical seasonal weakness. Overall, seaborne crude trade dropped by 3% during the quarter, largely due to weak refinery margins. Chinese crude imports decreased by 8% year-on-year. The size of the crude tanker fleet remained unchanged compared to the previous year.

Key Metrics:

• ROE: 21%
• ROCE: 18.5%

Adani Ports & Special Economic Zone Ltd 

Adani Ports & Special Economic Zone is engaged in the development, operations and maintenance of port infrastructure and has linked multi-product Special Economic Zone (SEZ) and related infrastructure contiguous to the Port at Mundra. During Q2 FY25, the company completed the acquisition of Gopalpur Port and Astro Offshore and signed 2 new port concession agreements.

Key Metrics:

• ROE: 18.1%
• ROCE: 12.9%

Dredging Corporation of India Limited

Dredging Corporation of India Limited (DCI) is engaged in providing integrated dredging services to ports, the Indian Navy and other maritime organizations in India. Dredging Corporation of India Ltd reported a 14.76% increase in revenue, reaching ₹227.91 crore for Q2 of 2024-2025, compared to the same period last year. On a quarterly basis, the company achieved a significant 50.29% growth in revenue over the past three months.

 Key Metrics:

• ROE: 2.92%
• ROCE: 4.18%

Conclusion

Investing in shipping stocks can offer growth opportunities, especially as global trade continues to grow and the industry undergoes modernization and sustainability shifts. With strategic initiatives by governments and companies alike to enhance port infrastructure, boost maritime connectivity, and adopt greener practices, the shipping sector is poised for long-term growth. However, like any investment, shipping stocks come with their share of risks, including cyclical market trends, geopolitical factors, and fuel price fluctuations.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.