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Time of India
19-05-2025
- Business
- Time of India
Cochin Shipyard, Mazagon, HAL slip up to 4% as defence stocks retreat after last week's rally cools
India's defence stocks retreated on Monday, as investors locked in profits following last week's sharp gains. Shares of Cochin Shipyard , Mazagon Dock Shipbuilders , Hindustan Aeronautics Ltd ( HAL ), and Garden Reach Shipbuilders & Engineers (GRSE) fell as much as 4%, pausing a spectacular run-up driven by bullish sentiment around new order flows and the success of Operation Sindoor . Shares of Mazagon Dock slipped 4.2% to Rs 3377.40 on the BSE, while Cochin Shipyard declined 3.7% to Rs 1960.05. HAL dropped as much as 3% to Rs 4972.10, and GRSE fell 4.4% to Rs 2372.20. All four stocks had logged double-digit percentage gains in the previous week, with Cochin Shipyard and GRSE climbing over 40% from May 9 to May 17. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 15 Most Beautiful Female Athletes in the World Click Here Undo The pullback reflects profit-taking after a dramatic rally sparked by the Indian military's successful demonstration of indigenous missile and drone capabilities during Operation Sindoor. The rally added Rs 1.8 lakh crore in market value to defence-related stocks since May 9. Drone-maker ideaForge Technology surged 56%, while Cochin Shipyard and GRSE notched up 41% and 40% gains, respectively. Defence PSU HAL, which shared its FY26 guidance during its earnings call held post-market on Friday, had gained 16% last week. Despite Monday's decline, analysts remain optimistic about the sector's long-term prospects. Antique Stock Broking expects a sharp acceleration in order flows over the next two years, particularly for shipbuilders like Mazagon Dock, GRSE, and Cochin Shipyard. 'We see large orders being placed in FY26–27 led by the ordering of six submarines under P75I, three Kalvari-class submarines, next-generation Corvettes, and P-17B Frigates, besides a host of smaller vessels,' the brokerage said. Live Events Antique projects that the combined order books of the three shipbuilders could more than triple by FY27. It has a 'buy' rating on Mazagon Dock and GRSE, and a 'hold' on Cochin Shipyard due to uncertainty around the scale and timing of the proposed second indigenous aircraft carrier (IAC-II). The brokerage estimates strong visibility on Rs 2.12 lakh crore worth of orders expected to be awarded over FY26–27. These include Rs 36,000 crore for three additional Kalvari-class submarines expected in FY26, Rs 70,000 crore for the P75I submarine program likely to be finalised by FY27, Rs 36,000 crore for next-generation corvettes equipped with BrahMos missiles, and Rs 70,000 crore for the P-17B frigate program. The Defence Acquisition Council has approved Rs 8.45 lakh crore in orders between FY22 and FY25—more than triple the amount cleared in the preceding three years. While Cochin Shipyard awaits clarity on IAC-II, Antique said this overhang does not alter its broader bullish view. 'Looking beyond FY27, we see the next wave of large-scale orders led by Project-18 destroyers and the indigenous Project-76 submarine program,' the brokerage noted. The recent run is not without precedent. The Nifty Defence index surged 350% between July 2022 and July 2024, only to correct 38% by February 2025 amid investor caution. The success of Operation Sindoor has since reignited interest, but Monday's declines suggest that near-term volatility may persist, even as the structural story remains intact. Also read | Defence stocks detonate in Rs 1.8 lakh crore boom. Is a ceasefire on the charts? ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Time of India
16-05-2025
- Business
- Time of India
Investor interest in defence stocks soars amid India-Pak military conflict
Mumbai: The India-Pakistan military conflict has reignited investor interest in some of the country's largest defence companies. Shares of Cochin Shipyard , Bharat Dynamics , Mazagon Dock Shipbuilders , and Paras Defence and Space Technologies surged between 10% and 35% since April 22-when the terrorist attack in Pahalgam happened, leading to the fighting between India and Pakistan. Nifty India Defence index went up nearly 13% as investors bet that the government may look to boost defence spending again. "Post the recent cross-border tension between India and Pakistan, defence stocks moved in anticipation that India will have to not only replenish its inventory of equipment but also order new ones to keep up its technological edge," said Mahesh Patil, CIO, Aditya Birla Sun Life AMC . "Owing to this, the likelihood of an increase in defence budget could rise faster over the next few years. In addition, it could also open an opportunity for India to export some of the equipment." Analysts said defence companies have enough on their plates. Antique Stock Broking said between FY22 and FY25, the Defence Acquisition Council (DAC) cleared military procurements worth ₹8.45 lakh crore, which is 3.3 times the value approved three years ago. The brokerage said these approvals are expected to convert into actual orders and business opportunities by FY26 and FY27. Live Events Agencies The government's focus on the sector resulted in one of the strongest rallies in shares of defence companies, with the Nifty Defence index shooting up about 350% between July 2022 and July 2024, when these shares peaked out. Subsequently, the index fell 38% till February-end amid the risk-off sentiment in Indian equities that hit the best performers in the previous years the most. Though the sector prospects remain strong, fund managers are wary about the pace of the rebound in these shares. Agencies "While the long-term structural opportunity in the sector remains intact, there is a disparity between current elevated levels and short-term fundamentals," said Patil. Umeshkumar Mehta, CIO, Samco Mutual Fund, said better visibility on the government's focus on the sector is keeping the valuations elevated for the sector. "In the near term, there might be a sharp elevation in terms of stock prices, but in the longer term, the sector is bound to deliver earnings growth considering the focus of the government in the sector," said Mehta. Antique continues to be positive on Mazagon Dock and Garden Reach Shipbuilders & Engineers (GRSE). On Cochin Shipyard , it said, "The stock price outlook for Cochin Shipyard is closely tied to the ordering of an aircraft carrier (IAC-II) on which there is lack of consensus over the urgency and size of the vessel, driving us to temper our stance on the stock."
Time of India
15-05-2025
- Business
- Time of India
Cochin Shipyard shares jump over 4% ahead of Q4 results
Cochin Shipyard shares rose 4.4% to Rs 1,774.90 in intraday trade on the BSE on Thursday, ahead of its March quarter results due later in the day. In an exchange filing on May 9, the company said its board of directors would meet on Thursday, May 15, to consider and approve the standalone and consolidated audited financial results for the quarter and year ended March 31, 2025. Defence order pipeline boosts sentiment State-run defence shipbuilders—including Cochin Shipyard, Mazagon Dock Shipbuilders , and Garden Reach Shipbuilders & Engineers (GRSE)—are expected to see their combined order books more than triple over the next two years, according to Antique Stock Broking. The brokerage noted that a sharp rebound in defence stocks since April, following border tensions between India and Pakistan and the approval of Rs 54,000 crore worth of defence contracts, has rekindled investor interest after a prolonged correction. Antique reiterated its 'Buy' rating on Mazagon Dock and GRSE, while maintaining a 'Hold' on Cochin Shipyard due to limited visibility on the timeline and scope of the proposed second indigenous aircraft carrier (IAC-II). It expects defence stocks to trade at up to 45 times FY27 core earnings, supported by strong policy tailwinds, increased indigenisation, and a healthy capex pipeline. Q3 performance recap In Q3 FY25, Cochin Shipyard reported a 27% year-on-year decline in consolidated net profit to Rs 177 crore, down from Rs 244 crore in the same quarter last year. Revenue from operations rose 9% to Rs 1,148 crore, compared to Rs 1,056 crore a year earlier. Operating profit (EBITDA) fell 23% to Rs 237 crore, and operating margins contracted to 20.7%. The board also declared a second interim dividend of Rs 3.5 per share for FY25. Cochin Shipyard share price target According to Trendlyne data, the average target price for Cochin Shipyard stock is Rs 1,338, indicating a potential downside of 23% from current levels. Of the three analysts tracking the stock, the consensus rating remains 'Hold'. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Economic Times
13-05-2025
- Business
- Economic Times
Mazagon Dock, GRSE, Cochin Shipyard set for 3x order boom by FY27 amid defence windfall: Antique Broking
India's state-run defence shipbuilders—Mazagon Dock Shipbuilders, Garden Reach Shipbuilders & Engineers (GRSE), and Cochin Shipyard—are poised for an order boom that could more than triple their combined order books over the next two years, according to Antique Stock Broking. ADVERTISEMENT The brokerage said a sharp recovery in defence stock prices since April, following a geopolitical flare-up at the India-Pakistan border and the clearance of Rs 54,000 crore worth of defence contracts, has rekindled investor interest after months of price correction. Antique reiterated its 'buy' ratings on Mazagon Dock and GRSE, while maintaining a 'hold' on Cochin Shipyard, citing limited clarity on the timeline and scale of the proposed second indigenous aircraft carrier (IAC-II). The brokerage said it expects the stocks to trade up to 45 times FY27 core earnings, supported by a strong policy framework, rising indigenisation, and a robust defence capex pipeline. The brokerage noted that the Defence Acquisition Council has approved Rs 8.45 lakh crore worth of orders between FY22 and FY25—3.3 times the amount cleared in the prior three years—and projected that significant contracts totalling Rs 2.35 lakh crore are lined up for FY26 and FY27. These include big-ticket naval projects such as three additional Kalvari-class submarines for Mazagon Dock, the P75I submarine program, next-generation corvettes equipped with BrahMos missiles, and the more heavily armed P-17B said it has strong visibility on Rs 2.12 lakh crore worth of orders expected to be awarded in FY26–27. The Kalvari-class submarine order alone could be worth Rs 36,000 crore and may be placed as early as FY26. The P75I order, estimated at Rs 70,000 crore, is expected to be finalised by FY27 and may be awarded to the sole remaining bidder—Mazagon Dock in partnership with Germany's Thyssen Krupp Marine Systems. The Rs 36,000 crore corvette project is nearing final stages, with bids likely to be opened in the first half of FY26. The P-17B frigate program, potentially worth Rs 70,000 crore, is also progressing, with a request for proposal expected later this this pipeline, Antique flagged the absence of consensus over the need and design of IAC-II as a key overhang for Cochin Shipyard. While previous major projects have concluded, the company's near-term order visibility is tied to the government's decision on whether to prioritise submarines or aircraft carriers. ADVERTISEMENT Antique has set target prices of Rs 3,433 for Mazagon Dock, Rs 2,024 for GRSE, and Rs 1,481 for Cochin Shipyard. Shares of all three companies rallied sharply on Tuesday, with Mazagon Dock climbing as much as 4.1% to Rs 3,023.50, GRSE gaining 5.1% to Rs 1,913.95, and Cochin Shipyard rising 4.4% to Rs 1,587.40 on the BSE. Also read | Defence stocks set to rally on export hopes amid rising India-Pakistan tensions: Ashika Equity ADVERTISEMENT Looking beyond FY27, Antique said investor concerns about a potential order cliff are unwarranted. The brokerage said it expects the next wave of large-scale orders to be led by Project-18 destroyers, valued at Rs 80,000 crore, and the indigenous Project-76 submarine program, estimated at Rs 1.2–1.5 lakh crore. Antique said it also anticipates a decision on a third aircraft carrier to replace INS Vikramaditya by 2038.'We see large orders being placed in FY26–27 led by the ordering of six submarines under P75I, three Kalvari-class submarines, next-generation Corvettes, and P-17B Frigates, besides a host of smaller vessels,' Antique said, reaffirming its bullish outlook on India's defence shipbuilding sector.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
13-05-2025
- Business
- Time of India
Mazagon Dock, GRSE, Cochin Shipyard set for 3x order boom by FY27 amid defence windfall: Antique Broking
India's state-run defence shipbuilders—Mazagon Dock Shipbuilders, Garden Reach Shipbuilders & Engineers (GRSE), and Cochin Shipyard—are poised for an order boom that could more than triple their combined order books over the next two years, according to Antique Stock Broking . The brokerage said a sharp recovery in defence stock prices since April, following a geopolitical flare-up at the India-Pakistan border and the clearance of Rs 54,000 crore worth of defence contracts, has rekindled investor interest after months of price correction. Antique reiterated its 'buy' ratings on Mazagon Dock and GRSE, while maintaining a 'hold' on Cochin Shipyard , citing limited clarity on the timeline and scale of the proposed second indigenous aircraft carrier (IAC-II). The brokerage said it expects the stocks to trade up to 45 times FY27 core earnings, supported by a strong policy framework, rising indigenisation, and a robust defence capex pipeline. The brokerage noted that the Defence Acquisition Council has approved Rs 8.45 lakh crore worth of orders between FY22 and FY25—3.3 times the amount cleared in the prior three years—and projected that significant contracts totalling Rs 2.35 lakh crore are lined up for FY26 and FY27. These include big-ticket naval projects such as three additional Kalvari-class submarines for Mazagon Dock, the P75I submarine program, next-generation corvettes equipped with BrahMos missiles, and the more heavily armed P-17B frigates. Antique said it has strong visibility on Rs 2.12 lakh crore worth of orders expected to be awarded in FY26–27. The Kalvari-class submarine order alone could be worth Rs 36,000 crore and may be placed as early as FY26. The P75I order, estimated at Rs 70,000 crore, is expected to be finalised by FY27 and may be awarded to the sole remaining bidder—Mazagon Dock in partnership with Germany's Thyssen Krupp Marine Systems. The Rs 36,000 crore corvette project is nearing final stages, with bids likely to be opened in the first half of FY26. The P-17B frigate program, potentially worth Rs 70,000 crore, is also progressing, with a request for proposal expected later this year. Live Events Despite this pipeline, Antique flagged the absence of consensus over the need and design of IAC-II as a key overhang for Cochin Shipyard. While previous major projects have concluded, the company's near-term order visibility is tied to the government's decision on whether to prioritise submarines or aircraft carriers. Antique has set target prices of Rs 3,433 for Mazagon Dock, Rs 2,024 for GRSE, and Rs 1,481 for Cochin Shipyard. Shares of all three companies rallied sharply on Tuesday, with Mazagon Dock climbing as much as 4.1% to Rs 3,023.50, GRSE gaining 5.1% to Rs 1,913.95, and Cochin Shipyard rising 4.4% to Rs 1,587.40 on the BSE. Also read | Defence stocks set to rally on export hopes amid rising India-Pakistan tensions: Ashika Equity Looking beyond FY27, Antique said investor concerns about a potential order cliff are unwarranted. The brokerage said it expects the next wave of large-scale orders to be led by Project-18 destroyers, valued at Rs 80,000 crore, and the indigenous Project-76 submarine program, estimated at Rs 1.2–1.5 lakh crore. Antique said it also anticipates a decision on a third aircraft carrier to replace INS Vikramaditya by 2038. 'We see large orders being placed in FY26–27 led by the ordering of six submarines under P75I, three Kalvari-class submarines, next-generation Corvettes, and P-17B Frigates, besides a host of smaller vessels,' Antique said, reaffirming its bullish outlook on India's defence shipbuilding sector.
