Shipbuilding stocks are likely to stay anchored

India's shipbuilding stocks are trading well above their 200-day moving average, a sign of rising investor confidence.

- Dipti Sharma

But 2025 hasn't delivered blockbuster returns for most counters, with outperformance limited to a few select winners.

Except for a few standouts, such as Garden Reach Shipbuilders & Engineers (up 28%) and Knowledge Marine & Engineering Works (up 26%), most names have delivered modest gains.

Mazagon Dock Shipbuilders has returned about 6%, while Cochin Shipyard and Great Eastern Shipping Co. are up around 12% each. Shares of Shipping Corp. of India have performed slightly better, rising 14% year-to-date.

During the same period last year, Garden Reach, Shipping Corp., GE Shipping, Cochin Shipyard, and Mazagon Dock gained between 27% and 90%. Garware Marine surged 378%, and Knowledge Marine rose 13%. Meanwhile, the Nifty India Defence Index rose 53% between 1 January and 6 October 2024, compared with a 23% gain over the same period in 2025.

The 200-day moving average is key to long-term market trends, providing a clearer picture of sustained momentum than shorter measures, such as the 50-day moving average or 52-week highs. Stocks trading above this level typically signal investor confidence and bullish sentiment, while those

slipping below may indicate waning investor confidence.

Despite being technically strong, investor interest is confined to a few names, while the broader sector is weighed down by high valuations, execution delays, and dependence on defence orders.