Defense Sector Stocks Surge; GRSE and Mazagon Dock Shares Jump Up to 19%. ICICI Securities Recommends Investment Based on Strong Fundamentals.
Mazagon Dock Share: A significant surge was witnessed in the shares of defense sector companies on Wednesday in the Indian stock market. Government-owned companies such as GRSE (Garden Reach Shipbuilders and Engineers), Mazagon Dock Shipbuilders, Cochin Shipyard, and Bharat Dynamics Limited (BDL) saw their share prices rise by up to 19 percent. This surge is primarily attributed to recent successful sea trials and government orders received by these companies.
GRSE Shares Witness the Steepest Rise
GRSE shares experienced the most significant increase, rising by 19.18 percent to reach ₹1630. This surge is a direct result of the recent successful sea trials of two warships, Himgiri (Yard 3022) and Androth (Yard 3035), conducted by GRSE.
Other Defense Companies Also Witness a Surge
- Mazagon Dock Shipbuilders shares increased by 7.26 percent, trading at ₹2549.60.
- Cochin Shipyard shares surged by 6.60 percent, reaching ₹1428.85.
- Bharat Dynamics Limited (BDL) shares also saw an increase of over 7 percent, reaching ₹1223.05.
- BEL (Bharat Electronics Limited) shares saw a 1.86 percent increase, reaching ₹290.50.
- HAL (Hindustan Aeronautics Limited) shares rose by 3.19 percent, reaching ₹3693.20.
ICICI Securities' Perspective
In its note, ICICI Securities reported that India's defense budget's capital expenditure has risen to ₹1.8 lakh crore, a 12.9 percent increase compared to last year and a 4.7 percent increase compared to FY25BE. ICICI Securities suggests that the recent dip in stock prices presents a good investment opportunity, as the fundamentals of these companies remain b.
Large Orders Received by Defense Companies
ICICI Securities also noted that BEL has launched its second assembly line for manufacturing electronic fuses for artillery munitions. Furthermore, the Indian Navy has signed a substantial ₹36,000 crore deal with Mazagon Dock Shipbuilders, expected to be finalized later this month. The Ministry of Defence has also signed a ₹10,200 crore PINAKA deal with Solar Industries and Munition India Limited.
