Shipbuilding stocks in focus: GRSE, CSL, MDL soar up to 14%; here's why

With a strong order book, production maturity of the ongoing projects and order visibility including in the commercial shipbuilding segment, GRSE is confident of even better performance during FY26.

Shipbuilding share price movement today: 

 

Shares of listed state-owned shipbuilding companies Garden Reach Shipbuilders & Engineers (GRSE), Mazagon Dock Shipbuilders (MDL) and Cochin Shipyard (CSL) have rallied by up to 14 per cent on the BSE in Wednesday’s intra-day trade on a healthy business outlook.

 

Among the individual stocks, GRSE share price has surged 14 per cent to ₹2,191.90, while Cochin Shipyard (CSL) share price  rallied 8 per cent to ₹1,577.20 and MDL gained 4 per cent to ₹3,002.30. In comparison, the BSE Sensex was up 0.44 per cent at 81,503 at 09:55 am.

 

In the past six months, these stocks have zoomed between 30 per cent and 60 per cent, as against the 5 per cent rise in the benchmark index. However, GRSE and CSL are quoting 23 per cent and 43 per cent lower, respectively, from their respective 52-week highs.  Catch Stock Market Updates Today LIVE

 

 

What’s fuelling rally in shipbuilding stocks

 

With a strong order book, production maturity of the ongoing projects and order visibility including in the commercial shipbuilding segment, the management of GRSE said they are confident of even better performance during the current financial year (FY26).

 

GRSE recorded the highest-ever revenue of ₹5,075 crore and profit after tax of ₹527 crore for the financial year 2024-2025 (FY25).

 

India has a negligible share of the global shipbuilding industry and relies heavily on foreign-owned vessels for its maritime trade. Several laws enacted recently and provisions in the Budget of 2025-26 are expected to boost the shipbuilding industry’s growth and provide impetus to ship ownership in India, according to ratings agency ICRA.

 

India's extensive coastline and proximity to major shipping routes provide a natural advantage for shipyards, besides which low labour costs are a positive for the labour-intensive shipbuilding industry. Several laws enacted recently, with provisions such as more relaxed usage of vessels, broader criteria for ownership of Indian flagged vessels, etc., are expected to boost domestic ownership of vessels.  ALSO READ | Why did Bharti Hexacom share price hit record high on May 14? Details here

 

Provisions in the Union Budget of 2025-26 for the establishment of a ₹25,000-crore maritime fund, introduction of Revamped Shipbuilding Financial Assistance Policy with an outlay of ₹18,090 crore, classification of large ships as infrastructure assets, etc., are expected to boost shipbuilding industry’s growth over the long-term, the rating agency said.

 

Make in India/Indigenization: The Indigenization Plan of the Indian Navy up to 2015-2030 states that the industry, including the private sector, can play a vital role in parts to meet the sophisticated needs of the armed forces through cost-effective utilisation of its know-how and existing infrastructure, in pursuance of the Government of India’s (GoI) vision of Make in India.

 

Sagarmala Project: As per this project, coastal and inland waterways traffic is expected to shoot up 15 times over the next 20 years. Similarly, capacity augmentation is expected to result in a five times rise in traffic capacity, from the existing 350 million tonnes. This is expected to bring in additional ship repair business.

 

Repairs/Refits: India’s strategic position along the eastbound and west bound international trade routes offers an opportunity to undertake repairs of the Vessels plying on these routes. A main container route connecting America and Europe to the East passes very close to the Indian coastline, presenting a major opportunity for repairs.