Garden Reach hits 52-week high, delivers over 100% return in 2025; Mazagon Dock, Cochin Shipyard also rally

PSU shipbuilders' stocks are witnessing strong traction in today’s trading session. Shares of Cochin Shipyard, Mazagon Dock Shipbuilders and Garden Reach Shipbuilders rose between 3.2% and 9.9% today. Shipbuilders' stocks have continued the positive momentum witnessed in the defence stocks last month after Operation Sindoor.

Garden Reach Shipbuilders shares have risen over 13% so far in June, touching a 52-week high of ₹3,465.5 apiece today before closing 6.9% higher at ₹3,368 per share. The recent rise comes after Kolkata-based company signed a Memorandum of Understanding (MoU) with Norway’s Kongsberg to indigenously build the country’s first-ever Polar Research Vessel (PRV).

These PRVs will cater to the requirements of the National Centre for Polar and Ocean Research and will be built indigenously. As per experts, this MoU is a significant milestone for the domestic shipbuilding industry, as it brings world-class design expertise for PRV development.

Defence shipbuilders' stocks seem to be the favourite stock among investors. As seen from the above table, these stocks have delivered returns between 37% and 106% to investors in 2025. High returns have come on the back of a robust orderbook, government policy framework favouring indigenisation, and substantial government investment.

Furthermore, these companies could see an inflow of even bigger orders in the coming years. The Defence Acquisition Council has approved orders worth ₹8.45 lakh crore over FY22–25, which is over 3 times compared to the previous three years, and if the same trend continues, then defence shipyards could get more orders.

Q4 results update

In the March quarter, Cochin Shipyard reported a 10.8% rise in net profit to ₹287 crore. Revenue for the quarter also jumped by 37% from last year to ₹1,758 crore. The company’s board announced a final dividend of ₹2.25 per share for the financial year 2024-25.

Mazagon Dock Shipbuilders reported subdued Q4 earnings. The company reported a 2.3% YoY rise in revenue to ₹3,174 crore, while its net profit halved from the year-ago period to ₹325 crore from ₹662 crore. Profitability was dented by higher expenses, mainly due to a rise in sub-contracting expenses, which saw a 10-fold jump from the same quarter last year. In FY26, Mazagon Dock expects revenue growth to be between 8% to 10% and EBITDA margin to be at 15%, backed by strong order book.

Meanwhile, Garden Reach Shipbuilders' net profit surged 118.9% year-on-year (YoY) to ₹244.2 crore, while its revenue from operations zoomed 61.7% YoY to ₹1,642 crore. Along with the results, the company announced a final dividend of ₹4.90 per equity share for FY25.