The shipbuilding sector is witnessing a remarkable rally, with shares of Garden Reach Shipbuilders & Engineers (GRSE), Cochin Shipyard Limited (CSL), and Mazagon Dock Shipbuilders Limited (MDL) surging by up to 28% over the past two trading sessions. This surge comes amid strong trading volumes and renewed investor interest in the sector.
The rally has been fueled by reports of the Indian government’s upcoming launch of the second edition of the Sagarmala programme, with a budgetary allocation of ₹40,000 crore. The programme aims to enhance India’s shipbuilding, repair, and recycling capabilities, positioning the country as a global maritime leader. The initiative is expected to catalyze investments worth ₹12 trillion over the next decade, bridging critical infrastructure gaps and driving coastal economic growth.
Under the existing Sagarmala programme, the government has already completed 272 projects worth ₹1.41 trillion, with 839 projects currently underway. The new phase, Sagarmala 2.0, is set to build on this momentum, focusing on modernisation, connectivity, and port-led industrialisation.
In Thursday’s intra-day trade, GRSE shares rose by 6% to ₹1,746.10, marking a 28% increase from ₹1,367.45 on Tuesday. Similarly, MDL shares climbed 5% to ₹2,764.95, while CSL shares gained 3% to ₹1,495.80. Both MDL and CSL have seen a 17% rise in the past two days.
Market analysts believe that the government’s strong focus on maritime infrastructure will create significant opportunities for shipbuilding companies. With aspirations to position India among the world’s top five shipbuilding nations, the sector is poised for substantial growth.
Stay tuned for more updates on this dynamic sector and its market performance.
