Dredging Corp hits 20% upper limit; why is this PSU stock in demand today?

Dredging Corporation has entered into 22 Memorandum of understanding with 16 organisations worth ₹17,645 crore during the India Maritime Week 2025 event held in Mumbai from 27th - 31st October 2025.

Share price movement of Dredging Corporation of India

 

Dredging Corporation of India (DCI) stock was locked in the 20 per cent upper circuit at ₹888.95 on the BSE in Monday’s intra-day trade backed by heavy volumes. In comparison, the BSE Sensex was up 0.08 per cent at 84,004.

 

Till 11:06 AM; a combined 3.24 million equity shares changed hands on the DCI counter. There were a combined pending buy orders for around 400,000 shares on the NSE and BSE, the exchange data showed. In the past one week, the stock price of the PSU company zoomed 43 per cent. 

Why did PSU smallcap stock ralliy 20% today?

 

DCI specialises in providing comprehensive dredging services to ports, the Indian Navy and other organisations in India. While the company primarily operates within the Indian dredging industry, it has also executed international projects in countries, including Sri Lanka, Taiwan and the UAE.

 

DCI on Saturday, November 1, 2025, informed the stock exchanges that the company entered into 22 Memorandum of Understandings (MoU) with 16 organisations worth ₹17,645 crore during the India Maritime Week 2025 event held in Mumbai from 27th - 31st October 2025.

 

DCI operates under a consortium of four major ports - Visakhapatnam Port Authority (VPA), Paradip Port Authority (PPA), Jawaharlal Nehru Port Authority (JNPA), and Deendayal Port Authority (DPA) - functioning under the aegis of the Ministry of Ports, Shipping & Waterways (MoPSW). 

Among these, a major highlight was the ₹4,000 crore investment dedicated to the modernization of DCI for construction of 11 dredgers apart from upgradation, automation and development of skilled manpower. Dr. M. Angamuthu, IAS, Chairman of DCI said these MOUs would help DCI to continue to cater to the dredging requirements which is the lifeline for ports, upgrade the existing fleet, indigensation of spares and dredger construction under Atma Nirbhar. ALSO READ | Titagarh Rail shares rise 4% on ₹2,481-crore MMRDA order win; details here 

Meanwhile, in the coming years, the Indian dredging industry is well positioned to benefit from both economic growth and strategic policy support by the Government of India to promote infrastructure development. The Union Budget 2025- 26 allocated ₹25,000 crore for the Maritime Development Fund. Furthermore, the Maritime India Vision, 2030 (MIV 2030) aims to transform major ports into transhipment hubs, expand port capacity and deepen port channels. These initiatives are anticipated to significantly boost the domestic dredging industry in the coming years, DCI said in its FY25 annual report.

 

The Sagarmala programme, spearheaded by the Ministry of Shipping, plays a pivotal role in positioning India as a global leader in maritime affairs. This programme aims to support modernisation and sustainable coastal development, further creating a need for dredging. With plans underway for Sagarmala 2.0, the Government of India reaffirms its commitment to transforming the Indian Maritime sector.

 

In the forthcoming years, India is expected to increase its port capacity to handle the rising volumes of Petroleum, Oil and Lubricants (POL) handling, as well as coal and containerized cargo. This expansion will necessitate extensive capital dredging to accommodate larger vessels and enhance port accessibility, thus contributing to the sustained growth of the domestic dredging industry, the company said.