Mazagon Dock, Cochin Shipyard, GRSE: Why did shipping stocks rise up to 8%?

Shares of shipping companies surged in trade on Monday, September 22, 2025, up to 8.1 per cent on BSE. The rally came after reports suggested that the Indian government has granted infrastructure status to large ships. The status upgrade is expected to make it easier for shipbuilders to raise capital. 

 

Reports also stated that the Indian Navy is expected to float a tender of ₹80,000 crore ($9.1 billion) for four large-sized landing platform docks.

 

At 10:35 AM, among others, shares of Cochin Spiyard were trading 2.39 per cent higher, Mazagon Dock Shipbuilders 1.25 per cent, Garden Reach Shipbuilders & Engineers (GRSE) up 4.77 per cent, Shipping Corporation 5.18 per cent, Swan Defence And Heavy Industries hit 5 per cent upper circuit, Essar Shipping rose 3.44 per cent, Transworld Shipping Lines 2.32 per cent, Great Eastern Shipping Company 0.29 per cent, and Adani Ports and Special Economic Zone 0.46 per cent.

 

Meanwhile, GRSE shares also jumped after the company signed the following Memorandum of Understandings(MoUs) with strategic partners in the shipbuilding, port, and infrastructure sectors.  

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  The partners include: Deendayal Port Authority, Kandla; Syama Prasad Mookerjee Port Authority, Kolkata; Indian Port Rail & Ropeway Corporation; The Shipping Corporation of India, and Modest Infrastructure Private Limited. 

 

The MoUs were inked at Bhavnagar’s ‘Samudra Se Samriddhi’ Mission, launched by Prime Minister Narendra Modi on Saturday, September 20, 2025. The aim is to emerge among the world’s top five shipbuilding nations by 2047 under the Maritime Amrit Kaal Vision, gathered fresh momentum.

 

Besides, Shipping Corporation of India (SCI) shares gained after the company signed multiple Memorandum of Understanding (MoU) with Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL), and Indian Oil Corporation (IOCL).   

The purpose of this collaboration is to build and operate a fleet together that will support the vision of Atmanirbhar Bharat, strengthen India’s shipping capacity, and improve the country’s energy security. Under this MoU, companies plan to jointly acquire, own, operate, and manage vessels. 

 

These vessels shall be used for international trade as well as coastal transport of petroleum, petroleum products, petrochemicals, and other hydrocarbon cargoes. 

Should you buy shipping stocks? 

Chokkalingam G, founder, Equinomics Research suggested not buying shipping stocks given their stretched valuations.   Meanwhile, Kranthi Bathini, director-equity strategy, WealthMills Securities recommended only investors with the long term horizon and high risk appetite to buy shipping stocks. He believes these businesses are cyclical and those who understand the cyclicality should only opt for these stocks.