India has been emerging as a superpower, particularly in terms of its economy, with the defence sector playing a crucial role in fostering its advancement.
India’s defence sector has attracted attention for its record-breaking exports, totaling Rs 21,083 crores in the 2023-2024 fiscal year. This marks a notable 32.5% increase from the previous year, showcasing the sector’s significant growth and its contribution to the nation’s economy.
There is a noticeable surge in the demand for defence-related solutions and a pressing need to produce these machines to cater to the growing economy.
The Indian government has set ambitious targets to achieve a turnover of Rs 1.75 lakh crores in defence manufacturing by 2025, with a focus on promoting self-reliance and Indigenous production.
India’s defence industry has significant potential in export too, with the government targeting a turnover of Rs 25 billion in the Aerospace and defence sector by 2025, including export revenue of Rs 5 billion respectively.
Here are a few warship manufacturing companies stocks that are poised to thrive due to the growing development of the defence sector:
Mazagon Dock Shipbuilders Limited
Headquartered in Mumbai, Mazagon Dock ShipBuilders specializes in producing machines such as warships, submarines, cargo/passenger ships, and offshore platforms. They are a leading shipyard company in India incorporated in the year 1934.
The shares of this company went down by 0.33 percent on BSE and trading at Rs 3,347.05 a piece on Thursday’s trading session. They also have a market capitalization of Rs 58,550 crores.
This PSU company produces two types of submarines known as the SSK class and the Scorpene class. The SSK class holds features such as a Combat management system (CMS), Torpedoes, Mine saddle & Torpedo Decoy system. On the other hand, the SSK class comes with features such as an Integrated Platform Management System (IPMS), Torpedoes, Anti-ship missiles & Torpedo Decoy system.
During the Q3 of FY24, The company’s total order book stood at Rs 38,389 crores. The firm received eight contracts out of which six of them are for the P75 Kalvari Submarines worth Rs 3,725 crores. The other two are for the Medium Refit and Life Certification (MRLC) worth Rs 2,346 crores
Over the past year, the company’s shares have generated a multi-bagger return of 292 percent whereas, for the past 6 months, the shares have yielded a return of 46 percent.
Looking into Mazagon’s financial performance the revenues increased by 30 percent from Rs 1,827 crores in September Q2 FY24 to Rs 2362 crore in Q3 FY24. Further, during the same time frame, the net profits have soared by 90 percent from Rs 312 crores to Rs 591 crores.
Garden Reach Ship Builders & Engineers.
Located In Kolkata, Garden Reach Shipbuilders (GRSE) and Engineers is an another leading shipbuilding entity that caters to the needs of the Indian Navy and the Indian Coast Guard.
GRSE boasts a diverse portfolio and a notable achievement as the pioneer Shipyard in India to export warships, having successfully delivered a remarkable tally of 100 warships to the Indian Navy and Indian Coast Guard.
The shares of this company went down by 1.20 percent on BSE and trading at Rs 1,428 a piece on Thursday’s trading session. They also have a market capitalization of Rs 13,114 crores.
The order book of Garden Reach Shipbuilders & Engineers Ltd (GRSE) stood at Rs 23,740 crore as of September 30, 2023, of this almost 98 percent to 98.5 percent comes from war shipbuilding.
Reviewing GRSE’s financial performance the revenues have increased by 2 percent from Rs 897 crores in September Q2 FY24 to Rs 923 crore in Q3 FY23. Further, during the same time frame, the net profits have increased by 10 percent from Rs 80 crores to Rs 88 crores.
Cochin Shipyard Ltd
Cochin Shipyard is an industrial leader known for its production of ships and vessels. Cochin Shipyard Limited ( CSL) has built & repaired some of the largest ships for its esteemed customers across the globe.
They have also exported around 45 ships to various clients outside India. The company primarily operates in two segments which are shipbuilding and ship repairing.
The shares of this company went down by 2.07 percent on BSE and trading at Rs 1,980 a piece on Thursday’s trading session. They also have a market capitalization of Rs 40,721 crores.
The company manufactures a range of warships and a few notable ones are the INS Vikrant, the Maharshi Parashuram, and the Clipper.
During the Q3 FY24, Cochin Shipyard’s total order book stood at Rs 21,500 crores with the defence segment contributing order book worth Rs 16,064. Crores.
Looking into Cochin Shipyards’ financial performance the revenues increased by 30 percent from Rs 954 crore in September Q2 FY24 to Rs 1,021 crore in Q3 FY23. Further, during the same time frame, the net profits have climbed by 30 percent from Rs 191 crores to Rs 248 crores.
Written By Zahal
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