Defense shares up to 17% amid India-Pakistan tension: Garden Reach Shipbuilders shares rose 16%; Cochin shipyard gains 10%

The Nifty India Defense Index is up by 4%.

Indian defense stocks have been steadily raised amidst India Pakistan tension. On Wednesday, May 14, shares of companies like Cochin Shipyard, Garden Reach Shipbuilders (GRSE) and Majgaon Dock have climbed up to 17%.

While the Nifty India Defense Index is up by 4%. Brokerage firms believe that defense stocks are continuously investing due to increasing government order, focus on domestic production and increase in exports.

In the last 1 month, Cochin Shipyard has given 23% returns while Paras Defense has given 42% returns.

Garden Reach Shipbuilders shares climbed 17%

PSU Defense Stock Garden Reach Shipbuilders (GRSE) is trading 17% faster today. Cochin Shipyard shares have a 10% rise. The stock of Majgaon Dock and Paras Defense rose by 4%.

Garden Reach Shipbuilders’ stock is trading up by Rs 290 to Rs 2,204.

GRSE profit up 48%

Garden Reach Shipbuilders (GRSE) have recorded a net profit of Rs 527 crore with a jump of 48% in FY25. Profit increased by 118% to Rs 244 crore in the fourth quarter. Due to this, 125% returns have been given in the stock in the last one year.

Defense share boom due to big orders

The main reason for the decrease in the defense sector is expected to get orders of Rs 8.45 lakh crore by FY27. The Defense Acquisition Council (DAC) has recently approved projects worth Rs 54,000 crore including T-90 tank engine, Varunastra Torpedo.

According to Antic Stock Broking, the policies of the government’s ‘Make in India’ push and domestic products will benefit Shipyard companies for a long time. Currently 65% ​​of the country’s defense equipment is being built locally.

Target to increase exports four times in 4 years

The government has given orders worth Rs 1.69 lakh crore to domestic companies in the defense sector in FY25. Defense exports in FY25 have reached a record level of Rs 23,622 crore. It has increased 34 times in the last ten years.

The government has set a target of defense production and export of Rs 3 lakh crore by 2029.