Amidst India-Pakistan tension, Indian defense stocks are continuously rising. On Wednesday, May 14, shares of companies like Cochin Shipyard, Garden Reach Shipbuilders (GRSE) and Mazagon Dock rose up to 17%. While the Nifty India Defense Index rose by 3%. Brokerage firms believe that defense stocks are being continuously invested due to increasing government orders, focus on domestic production and increase in exports. In the last 1 month, Cochin Shipyard has given a return of 23% while shares like Paras Defense have given a return of 42%. Garden Reach Shipbuilders’ share rose 17% PSU defense stock Garden Reach Shipbuilders (GRSE) closed today with a gain of 16% at Rs 2,212. At the same time, the share of Cochin Shipyard closed with a gain of 8% at Rs 1,699. Shares of Mazagon Dock and Paras Defense rose by 4%. GRSE’s profit increased by 48% Garden Reach Shipbuilders (GRSE) has reported a net profit of Rs 527 crore in FY25, up 48%. Profit in the fourth quarter increased by 118% to Rs 244 crore. Due to this, the stock has given a return of 125% in the last one year. Defense stock rises due to big orders The main reason for the rise in the defense sector is the possibility of getting orders worth 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 Antique Stock Broking, the government’s ‘Make in India’ push and policies to emphasize domestic products will benefit shipyard companies in the long run. Currently, 65% of the country’s defense equipment is being manufactured 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 reached a record level of Rs 23,622 crore in FY25. It has increased 34 times in the last ten years. The government has set a target of defense production and exports worth Rs 3 lakh crore by 2029.
