Defence Stocks Surge on MOD Orders:
On Friday, early trades saw a surge in the shares of defence equipment manufacturers and shipbuilders, as they rose by 9%. This boost was a result of the Ministry of Defence signing several contracts worth over ₹35,000 crores with both state-owned and private companies on Thursday.
Among the notable beneficiaries of this development 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 received a boost after the Ministry of Defence signed 10 contracts worth ₹5,498 crores with the company for the Indian Armed Forces. Additionally, the Ministry signed two contracts worth ₹2,696 crores to strengthen the country’s defence capabilities.
Furthermore, ICICI Securities has given a buy recommendation on Bharat Electronics shares, setting a target price of ₹125, indicating a potential upside of 28% compared to its current share price of ₹97.15 per share.
Bharat Dynamics Ltd has announced that it has secured an order worth ₹8,161 crores for weapon systems for the Indian Army, which is expected to be executed within three years. Additionally, the company has received an order worth ₹261 crores for CMDS for MLH Helicopters, bringing its consolidated order book position to an impressive ₹24,021 crores.
Moreover, ICICI Securities has issued a buy recommendation for Bharat Dynamics shares, setting a target price of ₹1,175, which represents a potential upside of 19.57% compared to its current share price of ₹982.70 per share.
Cochin Shipyard Ltd
Cochin Shipyard Ltd has secured a significant order from the Ministry of Defence worth ₹9,804.98 crores for the construction of six vessels. As per the terms of the contract, the first vessel is expected to be delivered in 48 months, while the final vessel is slated to be delivered within 108 months. At 01:37 PM, the company’s shares were trading at ₹479.10 per share.
Garden Reach Shipbuilders Ltd
Garden Reach Shipbuilders Ltd has signed a contract with the Ministry of Defence to construct four offshore patrol vessels, with an estimated cost of over ₹3,500 crores. The first vessel is expected to be delivered within 44 months from March 30, 2023, and the subsequent vessels will be delivered at six-month intervals from the delivery of the previous vessel. As of 01:39 PM, the company’s shares were trading at ₹453.05 per share.
For More Latest News Click Here