After Operation Sindoor, there is a steady rise in defense shares: Cochin Shipyard and Majhgaon Dock climbed 12% today, Paras Defense put 20% upper circuit

The Indian Defense Stocks has steadily accelerated since Operation Sindoor against Pakistan. On Friday, 16 May, shares of companies like Cochin Shipyard, Garden Reach Ship Builders (GRSE) and Majgaon Dock climbed up to 15%. While the Nifty India Defense Index is 6% rose.

Brokerage firms believe that defense stocks are continuously investing due to increasing government order, focus on domestic production and increase in exports amid stress from Pakistan. In the last 5 days, Cochin Shipyard has given 34% returns, while Garden Reach Ship Builders have given 38% returns.

Paras Defense shares climbed 20%

Paras Defense, a defense electronics -making company, is trading 15% at Rs 1,743 today. In the PSU defense shares, the Garden Reach Ship Builders (GRSE) is trading 12% with a gain of 12% at Rs 2,517. At the same time, the stock of Cochin Shipyard is trading at Rs 2,517 with a gain of 12%. The stock of Majgaon Dock has a gain of about 10%.

GRSE profit up 48%

Garden Reach Ship Builders (GRSE) has 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.

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