The Government of India’s Sagarmala initiative is backed by an estimated capital expenditure of ₹2.8 lakh crore. This monumental investment aims to transform India’s maritime infrastructure. This ambitious financial blueprint encompasses 233 distinct port modernization projects, strategically targeted for completion by 2035.
These key investment areas include New Ports, Major Port Modernization, Non-Major Port Modernization, Port Capacity Addition, and Ship Repair. The project has already made progress, with 120 projects (worth ₹40,733 crore) successfully completed.
Furthermore, the active deployment of funds continues at a strong pace, with 48 projects, valued at approximately ₹64,509 crore, under implementation. The pipeline for future growth also remains incredibly strong, with an additional 65 projects holding a massive ₹1.79 lakh crore under various stages of planning.
Against this backdrop, we examine three stocks positioned to benefit from this sectoral tailwind.
#1 Gujarat pipavav port: India’s first private port player
Gujarat Pipavav develops, operates, and maintains ports. It holds the distinction of being India’s first private sector port. It is not only expected to benefit from the Sagarmala project but also from the Pradhan Mantri Ujwala Yojana.
The Rs17,000-crore roadmap: Modernisation vs. Concession risks
The company is planning for long-term modernization. It has recently signed a Memorandum of Understanding with the Gujarat Maritime Board for ₹17,000 crore capital expenditure. This investment will be spread over 30 years and is based on a master plan for the next phase of the port’s growth.
The 2028 concession cliff: The risk behind GPPL’s expansion
The developments encompass the construction of new liquid jetties, liquid bulk facilities, container and RoRo (Roll-on/Roll-off) expansions, and extensive land-side development. But this is contingent upon the 30-year concession agreement, which is valid until September 2028.
Scaling Liquid Cargo: Achieving the 5.2 MMT Capacity Target
The company is currently executing a major capacity-addition project for liquid cargo. For this, the Board of Directors has approved a capital expenditure of approximately ₹720 crore. This new infrastructure is expected to be commissioned by December 2026.
Once completed, it will add 3.2 million metric tons (MMT) of capacity, significantly boosting the port’s overall liquid cargo capacity from the existing 2 MMT to 5.2 MMT.
The Strategic Moat: Harnessing Freight Corridors and LPG Demand
A core part of the port’s modernization involves enhancing its inland connectivity, particularly to capitalize on the government’s Western Dedicated Freight Corridor. The company has recently commissioned an additional rail siding specifically to handle car rakes. This will enable the port to handle two-car trains simultaneously.
To benefit from the Pradhan Mantri Ujwala Yojana, it is also enhancing its liquid infrastructure to serve as a key enabler of this government initiative. The port anticipates significant long-term growth in LPG imports driven by this scheme.
#2 JSW Infrastructure: The Second Largest Port Company
JSW Infrastructure, part of the JSW Group, is the second-largest private port operator in India, with a total capacity of 177 million tonnes per annum (MTPA). JSW Infra is well placed to reap the long-term benefits of maritime infrastructure investments.
The Landlord Model Pivot: Expanding Without Land Acquisition Hurdles
Such port modernization heavily relies on the adoption of the “Landlord Model.” The company has explicitly identified this as a major opportunity for private terminal operators. Under this model, the government retains port ownership and leases infrastructure to private companies
This allows players like JSW Infra to expand their operations without the heavy burden of land acquisition and primary development. The core of JSW Infra’s strategy to capitalize on national port modernization is its active participation in the government’s privatization drive.
The Road to 400 MTPA: Bidding for High-Margin PPP Projects
JSW Infra is undertaking a massive expansion. The company aims to increase its current capacity (177 MTPA) to 400 MTPA by FY30. It plans to achieve this through brownfield expansions (low-cost) at existing facilities and by developing high-margin greenfield mega-ports.
To this end, it is bidding for Public-Private Partnership (PPP) projects to develop and operate terminals at major government ports. Management has confirmed that they have already won bids for Berths 7/8 at the Syama Prasad Mookerjee Port in Kolkata. It is also evaluating and applying for incremental opportunities as they arise.
The Pricing Freedom Business Model
A major advantage of stepping into these newly modernized, government-backed port projects is the updated regulatory environment. New ports fall under the Model Concession Agreement. This framework provides JSW with clarity on “free pricing.” This model allows one to set one’s own tariffs, enhancing the commercial viability and profitability of these terminals.
Asset-Light Growth: Decoding JSW’s Gati Shakti Strategy
JSW Infra is also directly benefiting from an interconnected approach by expanding its land-side logistics to ensure cargo movements. The company is utilizing an “asset-light” model to build Gati Shakti Multi-Modal Cargo Terminals directly on land provided by the Indian Railways.
It has already received a Letter of Acceptance for a terminal in Somathane, Maharashtra, and is nearing completion of rail operations in Arakkonam, Chennai. By integrating modern seaports with dedicated logistics, the company can provide comprehensive, cost-effective supply chain solutions.
Pricing Freedom & Gati Shakti: The Path to ₹5,000 Crore EBITDA Placement
For this expansion, the company will spend ₹16,500 crore in FY27 and FY28. JSW Infra expects its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) to nearly double from the FY26 base to ₹5,000 crore, and revenue to rise from ₹4,476 crore (FY25) to ₹11,650 crore.
#3 Knowledge Marine & Engineering: Leading Dredging organisation
Knowledge Marine & Engineering Works is strategically positioned to benefit from the investment across its three core business segments. The establishment of new mega ports and the modernization of existing ports will build a high demand for dredging activities.
These new ports and modern facilities require both capital dredging (to create deep channels and berths) and maintenance dredging (to keep channels navigable for larger, modern ships).
The Dredging Dividend: Tapping into India’s ₹3,500-Crore Annual Market
Thus, projects, including the Sagarmala and Jal Marg Vikas programmes, are injecting an estimated ₹3,500 crore annually into the dredging market. As one of India’s few listed pure-play dredging companies, Knowledge Marine is well-positioned to secure government contracts.
Beyond Dredging: Scaling the Ancillary Craft and Specialized Vessel Moat
In addition, port modernization increases the need for specialized vessels that support daily maritime activities. This necessitates the availability of port ancillary crafts, such as tugs, dredgers, pilot boats, and other service vessels, for efficient port operations.
To this end, the company specializes in owning, operating, and chartering these exact vessels. This includes tugboats, pilot boats, fast-speed patrol boats for security, and mooring boats. As port facilities modernize, the demand for support vessels will rise, directly driving growth in its ancillary craft leasing and operation segment.
The Green Tug Pivot: Securing 15-Year Sustainable Revenue Streams
There is a strong push toward “Green Shipping.” Major ports are mandated to participate in the Green Tug Transition Program, which aims to replace diesel-powered harbor tugs. The company has expanded into the shipbuilding segment and is actively bidding on lucrative green-tug tenders.
With approximately 30 green tug contracts anticipated, each valued between ₹350–400 crore, this presents a massive ₹1,000+ crore market opportunity. Securing even a fraction of these modernization contracts will provide it with 15-year sustainable business agreements.
Valuation View: Assessing the ‘Quality Premium’ in a High-Growth Sector
Knowledge Marine stands out with strong Return on Capital Employed (ROCE) and Return on Equity (ROE), followed by Gujarat Pipavav. JSW Infra’s return ratios are moderately likely due to ongoing expansion. In terms of valuation, Gujarat Pipavav is trading close to its 3-year historical median, but at a discount compared to industry valuations.
On the other hand, JSW Infra’s valuation is at a premium relative to the industry, yet remains close to its historical multiple. While Knowledge Marine offers high growth, its current valuation is more than double its historical median, suggesting expectations are already priced in.
| Peer Comparison (X) | |||||
| Company | EV/EBITDA | Return Ratios | |||
| Company | 3-Yr Median | Industry Median | ROCE (%) | ROE (%) | |
| Gujarat Pipavav Port | 9.4 | 10.3 | 13.4 | 24.9 | 19.0 |
| JSW Infrastructure | 21.8 | 24.8 | 13.4 | 13.9 | 16.2 |
| Knowledge Marine | 66.6 | 28.7 | 65.0 | 24.7 | 25.8 |
| Source: Screener.in (As of 22 April 2026) | |||||
India’s ₹2.8 lakh crore Sagarmala push, spanning 233 projects by 2035, is steadily translating into execution, with ₹40,733 crore completed and ₹64,509 crore underway. A strong ₹1.79 lakh crore pipeline maintains visibility, positioning the maritime ecosystem for sustained growth as capacity, connectivity, and private participation continue to scale up. For companies in the sector, actual order inflow, execution are key. Meanwhile, keep them in your watchlist.
Disclaimer
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data were unavailable have we used an alternative, widely accepted, and widely used source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends. A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
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