Defense stocks rally as DAC approvals boost shipbuilders, GRSE leads
Defense stocks rally as DAC approvals boost shipbuilders, GRSE leads
Defence shares jump up to 20% after AoN approvals; GRSE posts record FY26 turnover as Cochin Shipyard, Mazagon Dock and others surge.
Defence stocks surged on Wednesday as the Defence Acquisition Council cleared Rs 2.38 lakh crore worth capital acquisitions, lifting sentiment across shipbuilders and suppliers. Among shipping names, Garden Reach Shipbuilders & Engineers (GRSE) jumped 19.75% to Rs 2,360, marking a fresh high after the company reported the highest annual turnover in its history for FY26, at Rs 6,400 crore, up from Rs 5,076 crore in FY25.
Mazagon Dock Shipbuilders rose about 12.26% to Rs 2,317.25, while Cochin Shipyard settled at Rs 1,338.80, up about 12.12%. Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL) and Bharat Dynamics Ltd (BDL) also moved higher, with BEL up 4.54% to Rs 418.80, HAL 5.29% to Rs 3,670.75 and BDL 9.84% to Rs 1,204.85. Antique Stock Broking maintained Buy ratings on several stocks, with target prices including GRSE at Rs 3,026, Mazagon Dock at Rs 3,407, and valuations noted for HAL, BEL and BDL.
Cochin Shipyard’s rally was helped by its inclusion in the NSE's Free Float & Options segment, boosting liquidity and attention on shipbuilding plays. Ashika Institutional Equities also highlighted growth opportunities in India’s warship-building sector, noting a shift toward higher-value, technologically intensive programmes that could sustain the rally in the near term.
Antique valued GRSE at Rs 3,026; Hindustan Aeronautics Ltd at Rs 5,841; Mazagon Dock at Rs 3,407; Zen Tech at Rs 1,800; and SOIL at Rs 16,600, underscoring a mix of submarine and surface-ship projects expected to drive earnings in the coming years. While the momentum is encouraging, analysts caution that execution risk and funding conditions could cap gains unless orders translate into steady profit growth.
