On Friday, Israel launched what it called “preemptive” strikes against Iran, targeting nuclear facilities and military sites. Loud explosions were reported in Tehran when Iran claimed its air defence systems were fully operational. In response, Israel declared a state of emergency.
Following the escalation, Iraq shut down its airspace and halted all air traffic, adding to growing concerns in the region. With tensions heating up in the Middle East, oil tanker rates are expected to rise — and that’s already being reflected in the stock market. Shares of Great Eastern Shipping Company (GESCO) and Shipping Corporation of India surged as much as 14 percent during Friday’s trading.
As per sources, GE Shipping could be a key beneficiary if the situation worsens, as about 50 percent of its fleet consists of oil and product tankers. If the conflict continues or spreads, more ships will likely avoid the region, tightening global shipping supply. This could push tanker rates even higher, especially since Iran alone exports around 2 million barrels of oil per day, making up about 2 percent of the world’s supply.
Great Eastern Shipping Company Limited
With a market cap of Rs. 15,234.5 crores, the shares of GESCO moved up by around 8 percent on BSE, rising to Rs. 1,049.7 on Friday. The company is a major player in the Indian Shipping and Oil drilling services industry.
For the fourth quarter of FY25, GESCO reported total consolidated segment revenue of Rs. 1,381.62 crore. The shipping segment was the standout performer, contributing Rs. 1,001.56 crore, about 72.5 percent of the total. The offshore segment added Rs. 380.06 crore, making up the remaining 27.5 percent.
Also read: ₹1.2 Lakh Cr Order Book: Infra stock jumps after receiving ₹518 Cr order from Navodaya Vidyalaya Samiti
Shipping Corporation Of India Limited
With a market cap of Rs. 10,571.3 crores, the shares of Shipping Corporation moved up by around 14.3 percent on BSE, rising to Rs. 235.9 on Friday. Incorporated in 1961, SCI is the largest Indian Shipping company limited by shares.
In Q4 FY25, SCI posted a consolidated segment revenue of Rs. 1,331 crore. The tanker segment led the way, contributing Rs. 927.5 crore or 69.7 percent of total revenue. The liner segment added Rs. 238.6 crore (18 percent), followed by bulk carriers at Rs. 100 crore (7.5 percent) and the technical & offshore segment with Rs. 65 crore (4.8 percent).
The company is involved in the business of transporting goods, and its own fleet includes bulk carriers, crude oil tankers, product tankers, container vessels, LPG carriers, and offshore supply vessels. Additionally, the company also manages a large number of vessels on behalf of various government departments and other organisations.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
