Shares of defence equipment manufacturers and shipbuilders were on fire on Friday’s early trades. They appreciated to the tune of 9% after the Ministry of Defence on Thursday signed multiple contracts worth over ₹ 35,000 crores with both state-owned and private companies.
Some of the top gainers were Bharat Electronics (up 7.54%), Bharat Dynamics (Up 6.08%), Cochin Shipyard (up 8.21%) and Garden Reach Shipbuilders & Engineers (up 8.88%).
Bharat Electronics Ltd
The Ministry of Defence signed 10 contracts worth ₹ 5,498 crores with the company for Indian Armed Forces. In another development, the Ministry signed two contracts worth ₹ 2696 crores with the company to bolster the defence capabilities of the country.
ICICI Securities has a buy call on the shares of Bharat Electronics with a target price of ₹ 125, which translates to an upside of 28% as compared to its share price of ₹ 97.15 apiece.
Bharat Dynamics Ltd
The company informed the exchanges that it has received an order worth ₹ 8,161 crores for weapon systems for the Indian Army. This order is to be executed in three years. Further, it received an order worth ₹ 261 crores for CMDS for MLH Helicopters. With this, the consolidated order book position of the company has reached a staggering figure of ₹ 24,021 crores.
ICICI Securities has a buy call on the shares of Bharat Dynamics with a target price of ₹ 1175, which translates to an upside of 19.57% as compared to its share price of ₹ 982.70 apiece.
Cochin Shipyard Ltd
The shipbuilder has received an order worth ₹ 9804.98 crores from the Ministry of Defence for the construction of six vessels. The first vessel is to be delivered in 48 months and the last is to be delivered within 108 months. The company’s shares were trading at ₹ 479.10 apiece at 01:37 PM.
Garden Reach Shipbuilders Ltd
The company has entered into a contract with the Ministry of Defence for the construction of four offshore patrol vessels at an estimated cost of over ₹ 3,500 crores. The first ship is to be delivered within 44 months from March 30, 2023, and the subsequent ships will be delivered at six-month intervals from the delivery of the previous ship. Its shares were trading at ₹ 453.05 apiece at 01:39 PM.
Written by Simran Bafna
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