Best Shipping Stocks to Buy in India – List of Top 10 Shipping Industry Shares of 2022Last Updated Date: May 29, 2022
Know everything about Best Shipping Stocks to buy in India here.
Shipping companies have been out there for quite a long time now. In the past few decades, we have seen a lot of shipping companies emerging.
It’s about time these companies start getting recognized in the market.
Since the last few years, there has been a lot of buzz in the stock markets and today we are here to present to you some of the best shipping companies in India.
Apart from that, we will also be taking a look at some of the best shipping stocks to buy in the present scenario.
Know About Shipping Sector in India
The shipping industry in India is overlooked by the Ministry of Shipping under the Government of India. India’s first factory for shipbuilding was established in the year 1941 in Visakhapatnam.
Currently, the primary shipbuilding centers in India are Goa, Mumbai, Kochi, and Kolkata.
The shipping sector in India acts as the backbone of the trading industry in India and facilitates the transportation of various goods.
As per the reports of the Ministry of Shipping, the shipping sector is responsible for handling and transporting more than 95% of the Trade volume in India.
For managing such a huge volume of trade, there are more than 12 major and 205 minor ports in the country.
These ports have a combined capacity of close to 1500 million tonnes per annum.
In terms of monetary value, the merchandise exports in the financial year 2021 amounted to a total of 290 billion USD.
Therefore, it is critical to understand Top Shipping Companies in India and make a relevant decision on which Shipping Sector Stocks to buy.
Top 10 Shipping Companies in India
Check out the Shipping Share Price & Ranking of Best Shipping Shares to buy Today or Tomorrow or for Long Term –
Now that we have gained insights into the Shipping Sector in India, it is time to take a look at some of the Best Shipping Shares in India.
In the following part of the blog, we will be taking a look at the Top 10 Shipping Companies in terms of market capitalization.
This includes Shipping Corporation of India or SCI, the largest shipping company in India, GE Shipping, and other renowned names in the shipping sector.
Apart from this, we will also be talking about 5 companies whose market Capitalization isn’t as big as the Top 10 but are good for investment.
To understand the financials of the company, we have taken the help of various ratios such as EPS or Earnings Per Share and P/E or Price to Earnings ratio, etc.
The article will assist you to decide which Ships Shares to Buy.
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Shipping Corporation of India Limited – Best Ship Stocks in India
The first and probably the best company in the shipping sector and the Best Ship Stocks in India to buy is Shipping Corporation.
It is a Public Sector Undertaking also known as PSU which is managed and operated by the Ministry of Shipping under the Government of India.
The Shipping Corporation of India Limited was established with the amalgamation of Western Shipping Corporation as well as the Eastern Shipping Corporation on 2nd October 1961.
Since then, there have been two more mergers in the Shipping Corporation of India with Jayanti Shipping Company in 1973 and Mogul Lines Limited in 1986.
Since its inception, there have been various turning points in the journey of the Shipping Corporation of India with its first diversification being in crude oil transportation in the year 1964.
As time passed by, SCI kept growing and completed its Diamond Jubilee in the year 2021.
Now that we have got an insight into the history of Shipping Corporation of India we must talk about the services they offer.
In the last 50 years, the Shipping Corporation of India has shown immense growth by offering various services. Some of these include:
- Bulk Carriers
- Break Bulk
- Coastal & Passenger Services
- Dry Docking
- Shipbuilding/Technical Consultancy
Why Invest in Shipping Corporation of India Limited?
Due to its wide array of operations and services the Shipping Corporation of India is one of the best shipping shares to buy.
The market capitalization of the company is over 6290.00 crores making it the largest in its sector.
The P/E ratio also known as the price to earnings ratio is 11 compared to the average P/E of Nifty at 20.
Therefore, the stock has growth potential and its backing by the Government of India makes it a safe investment.
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GE Shipping or The Great Eastern Shipping Company – Best Ship Shares to buy
Started in the year 1948 under the leadership of Vasant J. Sheth, GE Shipping or The Great Eastern Shipping Company is the largest privately owned and the second largest Shipping Company in the country.
The company was started with the joint efforts of two families, the Sheths and the Bhiwandiwala.
They started GE Shipping to have their shipping line to support and expand their trading businesses.
It was in the year 1948 when they purchased two ships namely Liberty Ship which was mothballed and the SS Fort Elice that led to the inception of The Great Eastern Shipping Company.
It’s been more than seven decades and the company has been achieving great heights every day making it one of the Best Ship Shares to buy.
A company that was started to expand the trading business now provides a variety of services including the following:
- Crude Oil Carriers
- Product Carriers
- LPG Carriers
- Dry Bulk Carriers
Among these four services, GE Shipping has distributed its fleet of 45 ships in the following manner:
- 8 Ships for Crude Oil
- 18 Ships for Products
- 5 Ships for LPG
- 14 Ships for Dry Bulk
Why Invest in GE Shipping?
Through its exemplary services, GE Shipping has built a name for itself in the market with an overall market capitalization of more than 4580.00 crores.
Moreover, its everlasting growth in the sector makes it a great pick for an investor looking to invest in shipping stocks in India.
The financials of the great eastern shipping company are as good as it gets. A P/E ratio of only 6.51 and an EPS (earnings per share) ratio of 49.18 makes it a great pick for investment.
Seamec Ltd. – Top Shipping Sector Stocks
Seamec Ltd. was incorporated as a private limited company on 29th December 1986 under the name Peerless Leasing Pvt. Ltd.
In the following year, it formed a joint venture with a Norwegian company, Rolv Berg Drive A/s Tromso. As a result of this joint venture, the company was renamed Peerless Drive Pvt. Ltd.
The change in the company’s name didn’t stop there. In the year 1994, the company went public and changed its name to Peerless Shipping and Oilfield Services Ltd.
Before getting its final name, the name of the company changed numerous times.
However, it was in the year 2000 when the company was renamed South East Asia Marine Engineering & Construction Ltd or SEAMEC Ltd.
Since then the company has stepped its feet in the shipping sector and performed miraculously.
As of now, the company operates and owns multipurpose vessels that provide a variety of services.
Some of these include marine, construction as well as diving service to both domestic and international clients.
Presently, there are 4 vessels in the company’s stock and the said vessels offer the following services:
- Vessel management
- Marine management
- Dive support
- Fire fighting
- Subsea construction
- ROV support
- Rescue operations
- De-mooring, and cranage
Why Invest in Seamec Ltd.?
Due to the rising demand in the Shipping sector, the industry is in its booming phase making it a great investment opportunity.
SEAMEC has a total market capitalization of 2870.483 crores making it the third-largest shipping company in the country.
In terms of financials too, SEAMEC is a lucrative choice for investors. It has a P/E ratio of 21 which might sound a little higher than the ones we talked about earlier.
However, the EPS has been rising year over year. Therefore, making SEAMEC one of the top shipping sector stocks.
Dredging Corporation of India Limited or DCI – Top Shipping Companies in India
Another great pick in the list of top shipping companies in India is the Dredging Corporation of India established in the year 1976.
As the name suggests, the primary operation of the company is dredging i.e. excavation of material from water bodies.
DCI operates exclusively in India and is responsible for dredging in the Indian Seaports. However, the company occasionally operates for foreign seaports for a few countries including Sri Lanka, Dubai, etc.
Talking about the history of the company, incorporated in March 1976 as a public sector undertaking and was listed on the Bombay Stock Exchange in February 2000.
However, in the year 2017, the Dredging Corporation of India was privatized by the Government of India.
Presently, the 4 major ports that have a stake in DCI are Visakhapatnam Port Trust, Paradeep Port Trust, Jawaharlal Nehru Port Trust, and Kandla Port Trust.
The services offered by the Dredging Corporation of India Limited include:
- Maintenance Dredging
- Capital Dredging
- Land Reclamation and Beach Nourishment
- Shallow Water Dredging
- Project Consultancy
Why Invest in DCI Limited?
The company has been a major player in the shipping sector for quite a long time which makes it a great investment opportunity. The shipping share price has also shown some incredible growth.
Even though the recent financials and fundamental analysis of the company do not look great with an EPS of -61.
The overall trend has been positive with the market capitalization of the company crossing 920.00 crores.
Thus, investment in the long term might prove to be healthy.
Shreyas Shipping and Logistics Ltd. (SSL) – Top Ship Stocks in India
Shreyas Shipping and Logistics is another renowned name in the shipping sector. SSL was established in 1988.
However, within 6 years i.e. in 1994 it went public and got listed on the Bombay Stock Exchange.
As of now, Shreyas Shipping and Logistics Limited claim to own a fleet of 13 vessels that amount to a combined capacity of 22,000 TEUs.
The company has shown immense growth in the past few years and received various awards for its exemplary services.
Some of these awards include the Maritime and Logistics Awards for 10 consecutive years from 2010-19, Gujarat Star Awards for 8 consecutive years from 2012-19, etc.
The company offers a variety of services including the following:
- Domestic Multimodal Coastal Container Services
- Regional Liner Services
- International Air/Sea Freight Forwarding
- Road Transportation
- Rail Transportation
Why Invest in Shreyas Shipping & Logistics Ltd?
The above-mentioned facts about the company’s growth and achievements make it a great investment pick for those looking to invest in the top ship stocks in India.
The financials of Shreyas Shipping and Logistics Ltd favor the same. With a total market capitalization of more than 520.00 crores and a P/E ratio of 3.58.
The company has huge growth potential in the long run.
Reliance Naval and Engineering Limited – Top 10 Shipping Stocks
Reliance Naval and Engineering Limited is known to be a company with the largest engineering infrastructure in the entire country and one of the best engineering infrastructures in the world.
This company was started in the year 1997 under the name Pipavav Shipyard in the state of Gujarat.
At its inception, it was a fully owned subsidiary of the SKIL Infrastructure group. However, after a few years, it received funding from various financial institutions in the country. This led to the incorporation of Pipavav Shipyard Limited.
Money kept flowing in through various private equity investors and Pipavav Shipyard Limited went public in 2009.
Since then the company has been growing drastically as a result of which it was acquired by Reliance Infrastructure Limited in the year 2015 with Anil Ambani as its chairman.
Thus, Pipavav Shipyard Limited became Reliance Naval and Engineering Limited in 2017.
The company provides the following services:
- Naval Shipbuilding
- Oil & Gas
- Commercial Shipbuilding
- Repairs Upgrades
- Heavy Engineering
- Naval Programs
Why invest in Reliance Naval & Engineering Limited?
For an investor looking to invest in the shipping sector but does not have enough capital, Reliance Naval and Engineering limited could be a good bet.
Though the financials of the company are not favorable with an EPS of -46, the market capitalization is 310.00 crores.
Thereby making it a prominent player among the top 10 shipping stocks in the country.
Essar Shipping Limited – Best Shipping Stocks to Buy
Essar Shipping Limited is one of the youngest companies in this list of best shipping stocks to buy. Though the company started in 1945.
It incorporates in the year 2010 under the name Essar Ports and Terminals Limited. However later that year the name changed to Essar Shipping Limited.
It’s a decade since the company incorporates. Yet, it has established a name for itself in the market in such a short span. In the year 2012, Essar Shipping Limited added its first Minicape Vessel to its fleet.
This marked the beginning of their journey in the shipping sector. After this, they got contracts for land rigs in Brunei and India.
With time, Essar Shipping Limited kept adding more vessels to their fleet.
Essar Shipping Limited recognizes for the following:
- Sea Transportation including Crude Oil, Petroleum Products, Dry Bulk, etc.
- Ports and Terminals
- Oilfield services include contract drilling, integrated project managing services, etc.
- Providing end-to-end logistics services.
Why Invest in Essar Shipping Limited?
Talking about the financials of the company, it has a total market capitalization of more than 256.00 crores.
This makes it India’s 6th largest company in the shipping sector. Though, the Earnings Per Share ratio or EPS is -33 showing that the company is not profitable presently.
However, the EPS has increased compared to the previous years. Therefore, long-term investment can keep an eye on Essar Shipping Limited.
Varun Shipping Company Limited – Top Shipping Stocks to Buy
Varun Shipping Limited incorporates in the year 1971 as a private limited company. Its name is Varun Shipping Private Ltd.
However, in the following year, the company went public and dropped the term ‘Private’ from its name.
Varun Shipping Limited marked the beginning of its journey in the shipping sector in 1973 with the purchase of its first product tanker.
Since then, the company kept growing and so did their fleet of vessels. Varun Shipping Limited managed to diversify its operations and incorporate a subsidiary company.
The name of said company is VSC International Pte Ltd. starts to avail benefits that were available to shipping companies based in Singapore.
In the year, 2015 Varun Shipping Limited demerge into two separate listed companies.
Varun Global Limited for ship management and investment and Varun Resources limited for the primary business of shipping.
Now that we have discussed the company’s history, it’s time we take a look at the products owned and services provided by the company.
- A fleet of 9 vessels for carrying LPG.
- A fleet of 3 crude oil tankers.
- 5 vessels for AHTS i.e. Anchor Handling Towing and Supply.
Why Invest in Varun Shipping Limited?
In terms of financials, Varun Shipping Limited has a share market capitalization of more than 146.00 crores.
However, the EPS or Earnings Per Share ratio at -29 isn’t great. People looking to invest in the Top Shipping Stocks to buy can pick up Varun Shipping in the long run.
Global Offshore Services Limited – Best Shipping Companies in India
Global Offshore Services Limited, formerly known as Garware Shipping Corporation Limited incorporates in September 1976.
The company was founded by Shri B.D. Garware to own, manage a variety of vessels.
Later that year, the company added more vessels making it a fleet of four vessels. In the year 2005, the company changed its name to Garware Offshore Services Ltd.
As time passed by, Garware Offshore services limited kept diversifying its operations by adding more vessels to the fleet.
The company got various awards and recognitions for its achievements in the shipping sector.
In the year 2011, the name of the company changed to its present name i.e. Global Offshore Services Limited.
In terms of operations, the company has a diverse range of services to offer including the following:
- Anchor Handling Transportation Supply or (AHTS)
- Providing support to multiple offshore as well as underwater projects including construction etc.
- Delivering the cargo etc to the platforms.
Why Invest in Global Offshore Services Limited?
In terms of investment, Global Offshore Services Limited has been showing consistent growth. The year-on-year return of Global Offshore Services Limited for the year 2021 is more than 570%.
With a market capitalization of nearly 142.00 crores, it is one of the best shipping companies in India in 2021.
Though the company presently has an EPS of -18, the potential for the company’s growth still prevails.
The company has a strong Profit loss statement that attracts all types of Investors.
Mercator Limited – Top 10 Shipping Shares to Buy
Mercator Limited, formerly known as Mercator Lines limited is an Indian shipping company incorporated as a private limited company in the year 1983.
However, in the following year, the company went public. Mercator Limited provides services and operates in various fields including Dredging, Commodity Transportation, Oil, Gas, etc.
Mercator limited has received numerous awards over the years for its exemplary services.
Some of these awards include ‘Star Company of the year’ by Business Standard in 2005, ‘Fastest growing small company of India’ in the year 2005 by Business Today, etc.
In the last 4 decades, the company has shown huge growth both in terms of financials and operations.
Talking about the operations, let us take a look at the services offered by Mercator limited.
Presently, Mercator limited provide the following services:
- Tankers for transportation of crude oil.
- Vessels for carrying dry bulk.
- Services in the coal business include mining, shipping, trading, etc.
- A dedicated fleet for dredging
Why Invest in Mercator Limited?
If we take a look at the annual report, Mercator Limited has a market capitalization of more than 110.00 crores.
Therefore making it the 10th largest company in its sector. Though the EPS ratio is not ideal at -3.99 it is growing over the years.
It is one of the Top 10 Shipping Shares to buy in India. Therefore, people looking to invest in the shipping sector can consider Mercator Limited.
Chowgule Steamships Limited – Shipping Sector Stocks to Buy
Chowgule Steamships Limited is one of the oldest companies in the shipping sector.
Incorporated in April 1963, Chowgule Steamships limited start for the facilitation of the transportation requirements of its parent company Chowgule and Company Private Limited.
At the time of its incorporation, 3 liberty ships managed the transportation of iron ore exports for Chowgule and Company Private Limited.
Over time, the steel industry in India started booming and Chowgule Steamships started maximizing their operation by deploying ships for international cross trades.
It is more than 50 years since the company started and it now has a fleet of vessels providing services such as movement of dry bulk, steel, etc.
For someone looking for shipping sector stocks to buy, Chowgule Steamships Limited can be a good pick. Though the market capitalization is 81.80 crores, the P/E ratio is quite favorable at 8.00.
GOL Offshore Limited – Shipping Companies Stocks to Buy
GOL Offshore or Great Offshore Limited is an Indian shipping company incorporated in the year 2005.
One of the primary objectives of GOL Offshore is providing exploration and production services to clients including the oil and gas producers etc.
Even though the company is known for providing a variety of services it eventually comes down to four primary services that include:
- Offshore Drilling
- Support for Offshore logistics
- Projects and Services related to Marine Construction
- Support Services for Ports and Terminals.
The history of GOL Offshore Limited goes back to the year 1983 when it first started its business. However, it’s a part of the Great Eastern Company Limited.
The business went well for quite a long time and it was in the year 2005. The Offshore Division of Great Eastern Company demerges later.
This resulted in the formation of GOL Offshore Limited with the acquisition of all the assets and liabilities related to the Offshore division of the Great Eastern Company Limited.
Therefore, it can be one of the prosperous Shipping Companies Stocks to buy and become a good investment option.
Hariyana Ship Breakers Limited – Ship Companies Shares to Buy
Another entity that was made to our list as Ship Companies Shares to buy is Hariyana Ship Breakers Limited which incorporates in July 1981.
The primary business of the company differs a lot when compared to the ones we have talked about earlier.
While the above-mentioned companies talk about operating and managing vessels, Hariyana Ship Breakers Limited is in the business of trading and investment.
The company deals in products including ferrous and non-ferrous metals, coal, etc. Apart from this, the company is engaged in the Ship Breaking segment.
In this, the company deals with the dismantling and breaking of used as well as old ships.
Other than this, the company provides numerous products and services including:
- Trading of metal scrap etc.
- Manufacturing of Industrial gases
- Services in the field of real estate and construction
The company starts four decades back and is consistent towards growth over the years.
Scindia Steam Navigation Company Limited – Shipping Companies in India
Scindia Steam Navigation Company limited is known to be one of the oldest shipping companies in India.
It was founded in 1919 and has functions for over a decade now. The foundation of the company took place with the purchase of its first ship named ‘Loyalty’.
In 1914 the ship name ‘RMS Empress of India’ sell to the Maharaja of Gwalior. Later on, this ship redesigns for serving as a hospital ship for the Indian troops and it was renamed as ‘Loyalty’.
Since then, Scindia Steam Navigation Company Limited has witnessed various crucial events including the purchase of Bengal Burma S.N.
Company in 1932 along with the purchase of the Indian Co-operative Navigation and Trading Company, etc.
In fact, in the year 1940, the company purchased its very own shipyards and named it ‘Scindia Shipyard’.
Shahi Shipping Limited – Ship Stocks in India
Shahi Shipping Limited started as a Partnership firm in the year 1985. However, in the year 1990, it converts into a private limited company and then into a public limited company in 1993.
The company owns and provides services through its fleet of 14 mini- carriers working across the west coast of the country.
Apart from the 14 mini carriers, the company owns a fleet of 27 vessels and operates in various fields. Some of these include:
- Vessels for carrying more water and petroleum
- Transportation of fresh drinking water
The company has long-term contracts with various corporations including the Shipping Corporation of India, ONGC, HPCL, etc.
Even though the market capitalization of the company is quite low at 7.30 crores, it is a good pick for investment for those looking to invest in ship stocks in India.
How to Identify Good Shipping Stocks for Trading?
While there are numerous shipping companies and stocks in India, to trade in shipping stocks it is important to pick the right one.
The following points will help you identify the right stock for trading:
Analyzing the financial leverage: Companies that have higher debt and lower current assets are not ideal for investment.
Therefore, looking for companies that have a Debt to Current Asset ratio of less than 1.10.
Liquidity of the Company: A company with higher liquidity is more likely to pay off the short-term liabilities easily.
Therefore, look for a company whose current assets are at least 1.5 times its current liabilities.
Price to Earnings (P/E) Ratio: A company with a less P/E ratio is more attractive for investment in the long run.
Profit after Tax Margin (PAT): The profit after tax ratio informs about the net profit generated from net sales. Therefore, a higher PAT symbolizes the growth of the company.
Earnings per Share (EPS) Ratio: The EPS tells about the net income that the company can distribute among total shareholders. An EPS of more than 80 is an ideal sign for investment.
How to Invest in Shipping Sectors Stocks?
To Invest in Shipping Stocks and start your investment journey in the shipping stocks, you need to follow the given procedure:
Open a Demat and Trading Account: The first step for Investing in shipping stocks is opening a Demat account with the broker of your choice.
Presently, all major brokers offer a combination of Demat and Trading Account. Therefore, you don’t have to open them separately.
Install the Application: Once you have opened a Demat Account, you will receive your login credentials for trading. You now have to install an app of the respective broker and log in using the credentials.
Do your Research: Before you start investing your money, you need to pick the right stock. For doing this you can do equity research and study various stocks and analyze them using the ratios we mentioned earlier.
Deposit money and buy shares: Once you have picked up stock for investment, it is time for you to add funds into your Demat account and buy the shares of the company of your choice.
Top Shipping Companies in India – Conclusion
Through this blog, we learned about various shipping companies in India along with the factors one has to keep in mind while choosing the right pick for investment. The shipping industry in India is ever-growing and has huge potential.
Therefore, investing in the top shipping companies in India is a wise decision in the long run.
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