India’s maritime sector has seen significant changes in recent years. Whether it’s the demand for ships, their maintenance, or the opportunities presented by new projects, there’s a buzz everywhere. This is why people are now taking shipbuilding stocks seriously. This sector may have a slow start, but its long-term performance is what sets it apart. In this blog, we’ll explore how this industry is growing and what investors should consider in 2025.
What Are Shipbuilding Stocks?
Shipbuilding stocks are companies that provide services such as ships, submarines, coastal vessels, offshore support ships, or ship repair and maintenance. These companies’ work spans a wide range from design to construction, testing, delivery, and post-service servicing. Because shipbuilding spans many years, these companies’ orders are also long-term, making their business model considered quite stable.
Two Main Categories of the Shipbuilding Industry
1. Defense Shipbuilders
These companies build warships, submarines, and high-end military vessels for the Navy. Their projects span several years, and payments are milestone-based. Due to increasing defense budgets and naval modernization, companies in this category are consistently receiving large orders.
2. Commercial & Marine Engineering Companies
These companies engage in general business operations such as cargo ships, passenger ferries, tugboats, dredging vessels, and ship repair. This segment is more affected by the global trade and shipping industry, hence it is considered slightly cyclical.
List of Listed Shipbuilding Companies in India (2025)
| S.NO | Company | Current Market Price (INR) | Market Capitalisation (in INR crore) | 52-Week High | 52-Week Low |
|---|---|---|---|---|---|
| 1 | Mazagon Dock Shipbuilders Ltd | 2,670 | 1,07,702 | 3,775 | 1,918 |
| 2 | Cochin Shipyard Ltd | 1,664 | 43,776 | 2,545 | 1,180 |
| 3 | Garden Reach Shipbuilders & Engineers Ltd | 2,752 | 31,533 | 3,538 | 1,184 |
| 4 | Swan Defence and Heavy Industries Ltd | 1,142 | 6,017 | 1,142 | 38 |
| 5 | Knowledge Marine & Engineering Works Ltd | 2,915 | 3,562 | 3,075 | 1,264 |
| 6 | JITF Infra Logistics Ltd | 296 | 761 | 827 | 252 |
| 7 | ABS Marine Services Ltd | 217 | 532 | 259 | 92.1 |
| 8 | VMS Industries Ltd | 28.3 | 70.3 | 50.1 | 22.1 |
| 9 | Garware Marine Industries Ltd | 29 | 16.5 | 38.9 | 20.3 |
| 10 | Datiware Maritime Infra Ltd | 20.6 | 10.3 | 20.6 | 15.4 |
Read Also: Best Shipping Stocks in India
A brief overview of the best Shipbuilding Companies in India is given below:
1. Mazagon Dock Shipbuilders Ltd
Mazagon Dock began as a small shipyard in Mumbai in 1934. At that time, it handled basic repairs and small vessels, but gradually grew into a key naval shipyard for India. Today, the company is known for building warships, submarines, and a variety of other sea vessels. Its work encompasses everything from design, construction, and subsequent maintenance. Having completed several major defense projects here, it is considered a reliable part of the country’s maritime force. The company’s reputation has been strengthened by its technical capabilities and long-standing trust.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 16.19% | 485.72% | 2,832.41% |
2. Cochin Shipyard Ltd
Cochin Shipyard was established in Kochi in 1972, and within a few years, it became one of the country’s largest shipyards. Not only are new ships built here, but older vessels are also constantly repaired and upgraded. The yard’s distinctive features are its large dock facilities and ability to handle complex projects. Passenger ships, specialized marine vessels, and some industrial vessels are also built here. Gradually, the facility began to play a stable and reliable role in the Indian maritime sector, and even today, it is known for its consistent work.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 5.47% | 396.76% | 800.46% |
3. Garden Reach Shipbuilders & Engineers Ltd
Garden Reach Shipbuilders was founded in 1884, which speaks volumes about the company’s longevity. Initially, it built simple river vessels and small vessels, but over the years, its work has evolved significantly. Today, its primary focus is building ships for the Navy, a task that requires technology, patience, and meticulous engineering. The company has earned a reputation for completing even complex projects with flying colors. Long-standing experience and continuous improvement have made it a reliable part of India’s defense shipbuilding lineup.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 63.93% | 448.73% | 1,317.71% |
4. Swan Defence and Heavy Industries Ltd
Swan Defence isn’t a very old company, but its work is in a direction where India is currently growing rapidly. Its focus is on defense and marine-related ships and heavy industrial equipment. The company bills itself as a modern shipbuilding player—where design, innovative technology, and rapid completion are its core strengths. Its scope is currently expanding, but rising demands for maritime and coastal security present significant opportunities. Those who closely follow the sector believe the company could handle significant projects in the future.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 2,777.91% | 41731.5% | 2,392.21% |
5. Knowledge Marine & Engineering Works Ltd
Knowledge Marine & Engineering Works is a company that has gradually established itself in the maritime services sector. Founded in 2015, it’s not very old, but its work is focused and practical. The company primarily engages in dredging, marine repairs, coastal projects, and small vessel operations. Its model is slightly different because, instead of building large ships, it focuses on tasks that require daily use—such as harbor cleaning, maintaining water depth, and ship maintenance. This results in a smaller scope, but consistent work. It is known for its steady and service-based operations.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 35.23% | 160.46% | 31.29% |
6. JITF Infra Logistics Ltd
JITF Infra Logistics‘ work is related to the maritime sector, but its scope isn’t limited to shipbuilding or repair. The company also works on logistics, infrastructure, and water-related engineering projects. It was founded in 2008 and has been involved in a variety of heavy engineering and marine utility projects since then. The company’s approach is somewhat multi-segment—sometimes it handles port-related work, sometimes water treatment projects, or marine logistics solutions. Its specialty is its focus on services that require long-term work and technical expertise. Therefore, it is considered a diversified engineering and marine services company.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -61.59% | 148.03% | 3,581.99% |
7. ABS Marine Services Ltd
ABS Marine Services is a company that has been operating in the maritime services sector for quite some time. Founded in 1992, it has been providing services such as marine operations, ship management, and offshore support. Instead of building large ships, the company focuses on tasks that every maritime business requires—crew management, technical support, marine equipment handling, and coastal operations. ABS has earned its reputation for its practical, ground-level work, where trust and experience are paramount. Its steady working style makes it a trusted name among maritime support companies.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 10.86% | -3.06% | -12.26% |
8. VMS Industries Ltd
VMS Industries was founded in 1991 and is known for its ship dismantling and ship recycling. Dismantling ships to extract useful metals and other materials is a field where both safety and experience are crucial, and the company has been doing this for many years. It also handles smaller projects related to marine repairs and engineering. As ship recycling is a significant industry in India, VMS has gradually established its presence in this field. Its focus has always been on practical work, discipline, and operating according to regulations.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -38.61% | 115.44% | 381.80% |
9. Garware Marine Industries Ltd
Garware Marine Industries was founded in 1975 and is known for its specialized products and services related to the maritime industry. Its work isn’t directly related to building large ships, but instead focuses on fishing nets, marine ropes, and other materials used in everyday maritime activities. The company gradually expanded its scope by branching out into boat repair and marine technical services. Garware has established itself as a company that engages in practical, down-to-earth marine work, where quality and reliability are paramount. Over the years, it has played a steady and reliable role in supporting maritime operations.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -09.69% | 162.44% | 574.42% |
10. Datiware Maritime Infra Ltd
Datiware Maritime Infra is a company established to work on projects related to maritime infrastructure and coastal services. Its core business leans towards port-related development, coastal facilities and maritime logistics services. The company is new and in the expansion phase, but its focus is on areas where India will need significant growth in the future such as the development of minor ports, coastal transport and marine-based infrastructure. Its role is still taking shape, but given the increasing investment in the maritime sector, the company wants to be involved in projects where there is long-term demand. This makes it seen as an emerging maritime infrastructure player.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 33.68% | 39.86% | 8.21% |
Key Performance Indicators (KPIs)
The key performance metrics of Shipbuilding Companies are mentioned below:
| Company | Operating Margin (%) | Net Profit Margin (%) | ROE (%) | ROCE (%) | Debt to Equity |
|---|---|---|---|---|---|
| Mazagon Dock Shipbuilders Ltd | 27.23 | 27.23 | 32.37 | 38.31 | 0.00 |
| Cochin Shipyard Ltd | 24.14 | 17.16 | 14.82 | 19.00 | 0.01 |
| Garden Reach Shipbuilders & Engineers Ltd | 14.05 | 10.39 | 25.36 | 32.36 | 0.00 |
| Swan Defence and Heavy Industries Ltd | -2,250.91 | -2,580.16 | -61.24 | -6.09 | 8.23 |
| Knowledge Marine & Engineering Works Ltd | 35.86 | 24.71 | 22.90 | 24.32 | 0.61 |
| JITF Infra Logistics Ltd | 12.67 | 8.42 | 45.70 | 41.02 | 0.86 |
| ABS Marine Services Ltd | 23.39 | 15.15 | 11.77 | 11.07 | 0.77 |
| VMS Industries Ltd | 4.16 | 2.35 | 7.07 | 12.13 | 0.15 |
| Garware Marine Industries Ltd | 36.17 | 35.89 | 2.40 | 2.31 | 0.00 |
| Datiware Maritime Infra Ltd | 20.05 | -116.87 | – | 1.15 | -3.69 |
Read Also: Best Multibagger PSU Stocks in India
Why Shipbuilding Stocks Matter in 2025
- Increasing Defense Budget and Naval Modernization : India’s defense modernization program is progressing rapidly in 2025-26, with the Navy’s capital acquisition budget increased to ₹1,48,838.9 crore. The ‘Buy Indian-Designed, Design and Build’ policy is leading to large orders for new warships and submarines for the country’s shipyards, which are becoming a strong growth engine for shipbuilding stocks.
- Maritime India Vision 2030 and Marine Infrastructure : Over 150 initiatives are being implemented under Maritime India Vision 2030, including the development of ports, shipbuilding, ship repair, and inland waterways. The government has targeted an investment of approximately ₹3-3.5 lakh crore for this sector. This development will generate orders for shipbuilding companies, enhancing their strategic role and investment potential.
- India’s Defense Exports and Global Partnerships : India is now moving beyond domestic orders but also toward foreign partnerships and export opportunities. International companies are being invited to invest and build in Indian shipyards, increasing both technological participation and competitiveness in the sector. This move opens the door to a significant pipeline for shipbuilding stocks, as event-time contracts and international demand can generate long-term profits.
- Growing Global Demand and the Ship Repair/Retrofit Market : With the expansion of India’s ports and islands, demand for shipbuilding and transshipping is increasing. For example, approximately 855 million tons of cargo are expected to be handled by ports in 2025. This is resulting in opportunities for domestic companies in sectors such as ship repair, maintenance, and green shipping initiatives, and these opportunities indicate a growing footprint for shipbuilding stocks.
Key Risks Investors Must Understand
- Execution Delays & Cost Overruns : Shipbuilding stretches over many years, so even minor delays increase project costs. Schedule changes directly impact companies’ profits.
- High Dependence on Government Orders : Most major orders in India come from defense and government institutions. Any policy changes or delays in approvals can slow companies’ growth.
- Cyclical Demand in Commercial Shipping : As global trade and freight traffic declines, demand for commercial ships falls. This impacts companies not involved in the defense sector more.
- Heavy Working Capital Requirement : Shipyards must continuously invest large sums of money for raw materials and project progress. Payments are often milestone-based, which can put pressure on cash flow.
- Commodity Price Fluctuations : Construction costs increase when steel, copper, and marine equipment prices rise. Companies are not always able to pass these costs on to customers.
- Limited Scalability for Some PSU Shipyards : Many public shipyards have limited capacity expansion or land/dock facilities, making it difficult to grow rapidly over the long term.
Read Also: Best Small Cap Defence Stocks in India
Conclusion
The shipbuilding sector is slowly reviving. Many new needs are emerging—sometimes related to defense projects, sometimes to ports and coastal development. Companies are contributing in their own ways, some by building ships, others by providing marine services. Before investing, consider the company’s capabilities and its reliability. If things are understood correctly, this sector could offer significant opportunities in the future.
Frequently Asked Questions (FAQs)
What are shipbuilding stocks?
These companies build or maintain ships.
Are shipbuilding stocks good for the long term?
Yes, if the company’s operations are ongoing, they may be good in the long term.
Which companies are more stable in this sector?
Defense-related shipyards are generally considered more reliable.
What should I check before investing?
The company’s work and its track record are the key considerations.
Are small shipbuilding companies risky?
Yes, smaller companies tend to be more volatile.
