Shares of shipbuilding companies like Garden Reach Shipbuilders & Engineers (GRSE), Mazagon Dock Shipbuilders (MDL), and Cochin Shipyard (CSL) continued their upward trend on Thursday, gaining up to 6% in intraday trade on the BSE. Over the past 2 days, these stocks have surged as much as 28%, driven by high trading volumes.
The rally in shipbuilding stocks comes after reports that the Indian government will soon introduce a ₹40,000 crore plan aimed at boosting shipbuilding, repair, and recycling. This initiative is part of the Sagarmala 2.0 programme, which aims to strengthen maritime infrastructure, enhance coastal trade, and position India as a global leader in shipbuilding. The programme is expected to attract investments worth ₹12 trillion over the next decade.
Under the Sagarmala 1.0 programme, the government has been executing 839 projects worth ₹5.79 trillion, including modernisation, connectivity, and port-led industrialisation. So far, 272 projects have been completed at an investment of ₹1.41 trillion. The first phase of Sagarmala is set to be completed by 2026.
The Indian government’s strong focus on maritime infrastructure will create new opportunities in the shipbuilding sector, particularly in cargo and passenger segments. The government aims to make India one of the top 5 shipbuilding nations by adding 4 million gross tonnage (GRT) of shipbuilding capacity and expanding port handling capacity to 10 billion metric tonnes per year.
Additionally, India is in discussions with leading shipbuilders from South Korea and Japan about collaborating with domestic shipyards. Companies like Cochin Shipyard, Mazagon Dock Shipbuilders, and Garden Reach Shipbuilders are expected to benefit significantly from these efforts.
With India’s strong maritime push, shipbuilding companies stand to gain significantly. Government initiatives and global collaborations could drive long-term growth in the sector.
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.
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Published on: Mar 20, 2025, 10:24 AM IST
Kusum Kumari
Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.
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