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HomeStocksA Deep Dive into India's Shipping Industry

A Deep Dive into India’s Shipping Industry

The shipping industry is a vast and complex network that plays a pivotal role in connecting nations and facilitating global trade. From colossal container ships crossing oceans to agile vessels navigating intricate riverways, shipping companies are the backbone of international commerce. However, this industry goes beyond the mere transportation of goods; it thrives on innovation, economic dynamics, and the unwavering dedication of maritime professionals.

Following are the top Indian shipping companies by market capitalization and their historical returns:

Company CMP Market Cap (Cr) 1Yr return % 3Yrs return % (CAGR) 5Yrs return % (CAGR)
Great Eastern Shipping Company 842.05 12,021.73 58.35 53.46 24.61
Shipping Corporation of India Ltd 140.45 6,542.17 64.46 52.49 35.09
SEAMEC Ltd 633.20 1,609.92 -42.20 13.73 22.42
Shreyas Shipping & Logistics Ltd 366.90 805.73 7.82 83.44 10.51
Essar Shipping Ltd 15.38 318.32 63.13 19.29 2.27
Seacoast Shipping Services Ltd 2.78 149.75 -62.34 -31.92
Global Offshore Services Ltd 36.30 89.78 -32.75 85.32 22.25
Chowgule Steamships Ltd 14.00 50.83 1.34 56.97 2.33
Shahi Shipping Ltd 5.25 7.61 29.63 -3.15 -6.89

 

Factors to consider

When analysing a shipping company, consider several critical factors. Dive into the fleet characteristics, including size and vessel types, along with their condition. Examine the company’s global reach and specific routes of operation. Financial stability is crucial, encompassing parameters like revenue growth and profitability. Safety records, compliance with regulations, and eco-friendly initiatives are essential. Embrace technological advancements, including digital tracking systems and fuel-efficient practices.

Also Read: Indian Logistics Sector Stocks

Additionally, monitor market trends, competition, and geopolitical risks. Evaluate management’s expertise and adaptability in response to industry dynamics.

Indian Shipping Industry Outlook:

As of December 31, 2022, the Indian shipping industry boasted a combined fleet size of 20.54 million deadweight tons (dwt) across 1,520 ships. Tankers represented the largest share at 56.6%, followed by dry bulk vessels at 15.7% and container ships at 5.1%. A few major players, including The Shipping Corporation of India Ltd and The Great Eastern Shipping Company Ltd, dominate the industry, contributing around 45% of the total tonnage. Tankers are predominant, followed by dry bulk carriers.

The tanker segment performed well in CY2022 and Q1CY2023, with high charter rates. While dry bulk carrier rates moderated in CY2022, they remained substantial. The Indian Shipping industry’s overall performance in FY2023 was strong, with expectations of continued performance in FY2024, driven by a positive outlook for mid-weight tankers and a modest recovery in the dry bulk segment.

Disclaimer:This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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