Shipping companies witnessed a surge in their share values on August 21st following reports suggesting the government's impending approval of massive schemes
for the sector.
Scheme Approval Anticipated
The Finance Ministry's Expenditure Finance Committee (EFC) already greenlit the schemes, sending them for Cabinet approval. The report indicated a plan for Rs 65,000 crore in schemes to be cleared in the next 20-25 days. This includes Rs 20,000 crore for Shipbuilding Financial Assistance Policy.
Stock Market Reaction
Mazagon Dock Shipbuilders saw a 2.5 percent increase, reaching Rs 2,841.40. GRSE shares gained over 3 percent, hitting Rs 2,643.50, almost doubling in six months. Shipping Corporation Of India (SCI) shares jumped over 2 percent, reaching Rs 219.
Allocation of Funds
Out of the total Rs 65,000 crore, approximately Rs 20,000 crore will be earmarked for the Shipbuilding Financial Assistance Policy. Another Rs 25,000 crore is likely to be allocated to the Maritime Development Fund (MDF), while the remaining funds will support shipbuilding clusters.
Key Performance Metrics
GRSE's stock has nearly doubled in the past six months and currently has a P/E ratio of over 52. SCI shares have jumped around 34 percent in the last six months and have a P/E ratio of approximately 11.5. Mazagon Dock's stock has gained nearly 32 percent in the past six months and has a P/E ratio of over 55.
