Stocks have surged after Israel launched precise and pre-emptive attacks on Iran’s nuclear program in the early hours of Friday, resulting in the deaths of many commanders and scientists, a news confirmed by Iran’s Supreme Leader Ayatollah Khamenei. The conflict only escalated over the weekend, entering the fourth day, as both countries continue to launch attacks and counter-attacks on each other.
The Baltic Dry Index, a benchmark for the price of moving the major raw materials by sea, has risen nearly 41% in the last one month, and 38% of that surge has only come in the month of June. The index was up 9% on Thursday and added another 4% on Friday. On a year-to-date basis, the index has nearly doubled.
Analysts mentioned that GE Shipping could be a play on the rising tensions in the Middle East, as 50% of the company’s fleet comprises of oil and product tankers.
“Tanker rates should firm up if the conflict persists or spreads as ships will avoid the Middle East,” the analysts said, adding that Iran exports 2 million barrels per day of oil, which is significant, as it is 2% of global supply.
GE Shipping shares are trading at a 35% discount to its Net Asset Value, with nearly 40% of the market cap as cash, along with positive free cash flow and a minimum of ₹2,000 crore cash generated per annum, according to the analysts.
Only two analysts have coverage on GE Shipping, and both have a “buy” recommendation on the stock. No analyst has coverage on Shipping Corporation.
Shares of Shipping Corporation of India are trading 4% higher at ₹235.86, while those of GE Shipping are up 2% at ₹1,009.25.
First Published: Jun 13, 2025 10:31 AM IS