The Foreign and Defence ministers of India and Japan met on Tuesday, August 20, 2024, for expedited talks on defence technology transfers between the two countries and to reaffirm the importance of multilateral defence cooperation and exchanges in the Indo-Pacific sea region following Chinese assertiveness in regional seas.
Prime Minister Narendra Modi, with Japan’s foreign and defence ministers, conveyed the message that the India-Japan partnership is key to promoting “peace and stability” in the Indo-Pacific region. Modi also called for closer cooperation in areas of critical minerals, semiconductors and defence manufacturing.
Listed below are some of the stocks to benefit from the India-Japan talks in the defence and other related cooperation in the Indo-Pacific region.
Mazagon Dock Shipbuilders
Mazagon Dock Shipbuilders Limited is a Navratna Public sector Undertaking which is one of India’s leading defence sector companies under the aegis of the Ministry of Defence, it is engaged in the construction, repair, and refurbishment of warships and submarines at its dedicated facilities in Mumbai and Nhava.
With a market capitalization of Rs. 91,305 Crores, the shares of Mazagon Dock Shipbuilders Limited closed at Rs. 4,527 per equity share, up 5 percent from its previous day’s close price of Rs. 4,300. It has delivered multibagger returns of 143 percent in a year.
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It has a strong order book of Rs. 36,561 Crores and Its product portfolio consists of Destroyers, Missile Boats, Conventional Submarines Offshore Patrol Vessels, Cargo Vessels, Multipurpose Support Vessel, Tugs, Dredgers, Windmill towers Pontoons, Offshore Platforms, Floating Border Outposts, and many more.
Its revenue from operations grew by 8.48 percent from Rs. 2,173 Crores in Q1FY24 to Rs. 2,357 Crores in Q1FY25, accompanied by profits of Rs. 314 Crores to Rs. 696 Crores
Cochin Shipyard
Cochin Shipyard Limited is engaged in the business of shipbuilding, ship servicing/repair, marine engineering, and providing training, strategic, and advanced solutions.
With a market capitalization of Rs. 55,775 Crores, the shares of Cochin Shipyard Limited closed at Rs. 2,120 per equity share, up 2 percent from its previous day’s close price of Rs. 2071.80. It has delivered multibagger returns of 410 percent in a year.
It has a strong order book of Rs. 22,000 Crores and Its product portfolio consists of bulk carriers, tanker ships, passenger vessels, aircraft carriers, fleet tankers, dredgers, inland water vessels, and many others.
Its revenue from operations grew by 60 percent from Rs. 444 Crores in Q1FY24 to Rs. 710 Crores in Q1FY25, accompanied by profits of Rs. 109 Crores to Rs. 181 Crores
Garden Reach Shipbuilders & Engineers
Garden Reach Shipbuilders Limited is a shipbuilding company catering to the shipbuilding requirements of the Indian Navy, Indian Coast Guard, and many others. It is engaged in the construction, and engineering of commercial vessels and engine production activities and mainly engaged in the construction of warships/vessels for the defence sector.
With a market capitalization of Rs. 20,642 Crores, the shares of Garden Reach Shipbuilders & Engineers Limited closed at Rs. 1,802 per equity share, up 1.39 percent from its previous day’s close price of Rs. 1,777.25. It has delivered multibagger returns of 136 percent in a year.
It has a strong order book of Rs. 22,652 Crores and its product portfolio consists of Naval ships, Missile boats, survey vessels, coast guard vessels, interceptors, tugs, hovercrafts, Fast Attack Crafts and many others.
Its revenue from operations grew by 33.58 percent from Rs. 756 Crores in Q1FY24 to Rs. 1,010 Crores in Q1FY25, accompanied by profits of Rs. 77 Crores to Rs. 87 Crores.
Bharat Electronics
Bharat Electronics Limited (BEL) is a Navratna central public sector enterprise that operates in the aerospace and defence sector, it primarily manufactures advanced electronic products for ground and aerospace applications
With a market capitalization of Rs. 2,23,752 Crores, the shares of Bharat Electronics Limited closed at Rs. 305.40 per equity share, up 0.74 percent from its previous day’s close price of Rs. 303.15. It has delivered multibagger returns of 137 percent in a year.
It has a strong order book of RS. 76,705 Crores and Its product portfolio consists of a wide range of systems and technologies designed for modern warfare, surveillance, communication, and electronic warfare like Radar and Sonar Systems, Electronic Warfare (EW) Systems, Missile Systems, Communication Systems, weapon systems, and many more.
Its revenue from operations grew by 20.11 percent from Rs. 3,533 Crores in Q1FY24 to Rs. 4,244 Crores in Q1FY25, accompanied by profits of Rs. 539 Crores to Rs. 791 Crores
BEML
Bharat Earth Movers Limited Limited (BEML) is engaged in the business of manufacturing and supplying a wide range of heavy earthmoving equipment catering to the mining and Construction, defence forces, Railways and many others industries.
With a market capitalization of Rs. 16,018 Crores, the shares of BEML Limited closed at Rs. 3,846.45 per equity share, up 2 percent from its previous day’s close price of Rs. 3,765.50. It has delivered a return of 85 percent in a year.
It has recently signed a Memorandum of Understanding (MoU) with the Indian Navy for collaboration in fostering indigenous design, development, manufacturing, testing, and product support for essential marine engineering equipment.
It has a strong order book of Rs. 11, 872 Crores its product portfolio for the navy and defence consists of Marine Diesel engines, marine gearboxes, water jet propulsion systems, submarine rescue systems, armoured vehicles, missile launchers, Aerospace Ground Support Equipments and many more.
Its revenue from operations grew by 9.91 percent from Rs. 577 Crores in Q1FY24 to Rs. 634 Crores in Q1FY25, accompanied by losses of Rs. 75 Crores to Rs. 70 Crores
Written by Bharath K.S
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