Global tensions on major trade routes have driven up freight rates, especially for tankers. Though the situation has cooled slightly, rates remain high due to an ongoing mismatch between demand and supply. Many shipping companies are using longer routes via the Cape of Good Hope, adding to the increase in rates.
Two Indian shipping companies—Shipping Corporation of India (SCI) and Great Eastern Shipping Company (GE Shipping)—have benefited from these changes and delivered strong returns recently.
SCI is a government-owned company and India’s largest in terms of shipping capacity. It owns a mixed fleet of 57 vessels, including oil tankers, bulk carriers, container ships, and more. The company also manages third-party ships and supports national missions such as ISRO's Mars Orbiter Mission and DRDO operations.
In FY25, SCI’s revenue rose 11% to ₹56.3 billion and net profit jumped 24% to ₹8.4 billion. The tanker segment was the biggest contributor, making up 64% of revenue and 79% of profits. Although the technical and offshore segment showed weak performance and bulk carriers recorded losses, SCI still delivered strong overall results.
With newer ships averaging 11–12 years in age and a growing presence in the Middle East route, SCI is well-positioned to gain from strong tanker demand. The stock currently trades at a P/E ratio of 12.2, above its 10-year average of 6.2. SCI share price is 226.20, having risen by 0.15% at 11:52 AM.
GE Shipping is India’s oldest private sector shipping firm, with over 70 years of experience. It operates 38 vessels and is active in offshore oilfield services through its arm, Greatship India. About 58% of its fleet is focused on tankers, giving it strong exposure to current market trends.
In FY25, revenue stayed flat at ₹54 billion, and profit fell 10% to ₹23.4 billion due to a high base in FY24. Still, the company expects demand for tankers to remain strong through 2027, with limited new ship supply. It also expects stable income from long-term LPG carrier contracts and offshore rig repricing.
GE Shipping runs 80% of its fleet on spot contracts, which means higher earnings in rising rate markets. Its P/E ratio is around 6, slightly below its 10-year average of 7. GE Shipping Company share price was trading at 1,016.20, up by 0.08% at 11:52 AM.
Read more: India Plans New Push for Indian-Flagged Ships Amid Struggles of Old Scheme.
Both SCI and GE Shipping are riding the wave of higher freight rates, strong tanker demand, and limited supply. SCI offers steady growth with government support, while GE Shipping is geared to benefit from spot rate opportunities. With stable demand and limited new fleet additions ahead, both stocks are worth adding to your watchlist.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Jul 9, 2025, 11:50 AM IST
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