Dredging Corp Zooms 26% Weekly, Hits 52-Week High on Strong Outlook
Overview
Dredging Corporation of India (DCIL) shares reached a new 52-week high, climbing 26% in a week. The surge follows significant institutional investment from Invesco Mutual Fund and a robust business outlook. DCIL's recent transfer of promoter control to major ports and a substantial order book bolster its growth prospects.
Dredging Corporation of India (DCIL) shares soared to a fresh 52-week high of ₹1,159.15 on Wednesday, capping a remarkable 26% gain over the past week. This surge significantly outpaces the BSE Sensex's modest 1.4% decline in the same period. The public sector undertaking's stock has now seen an exceptional 106% advance from its reported low of ₹561.70 in October 2025. At midday, DCIL traded 3% higher at ₹1,136.80, while the Sensex edged up by 0.09%.
Institutional Influx and Ownership Shifts
The recent uplift, amounting to a 32% increase in market value since December 8, 2025, is largely attributed to significant institutional buying. Invesco Mutual Fund acquired a substantial stake, purchasing 250,694 shares at ₹942.83 per share via open market transactions on the NSE. As of December 31, 2025, Invesco India PSU Equity Fund held 3.64% of DCIL, a notable increase from nil holding in the September 2025 quarter. Life Insurance Corporation of India also reduced its stake to 3.92% from 4.03%, data shows.
Promoter Evolution and Order Book Strength
The company, promoted by a consortium of major ports including Visakhapatnam Port Trust, Paradip Port Trust, JNPT, and Deendayal Port Trust, has seen its management control transferred from the Government of India. This transition facilitates the receipt of nomination-based orders. DCIL's business outlook is underpinned by a substantial order book. The company recently entered into 22 Memorandums of Understanding (MoUs) worth ₹17,645 crore during India Maritime Week 2025, held from October 27-31, 2025. These agreements align with national maritime objectives like Maritime India Vision 2030 and Atmanirbhar Bharat 2047.
Ratings and Future Prospects
CareEdge Ratings noted DCIL's strong parentage and growing order book as positives. However, profitability was impacted in FY25 by ₹118 crore in liquidated damages for performance shortfalls and forex losses. Delays in commissioning its new dredger and lower-than-anticipated order inflow had also constrained performance. The commissioning of India's largest dredger, DCI Dredge Godavari, scheduled for October 2026, is anticipated to enhance capacity and support future orders, improving the company's scale and revenue profile. Reliance on promoter ports has increased to 43% of the order book.
