Mazagon Dock shares jump over 15% in two session amid talks of new defence order win; check details

Mazagon Dock shares are in the spotlight today, rising nearly 9% intraday to hit a day high of ₹2,560 apiece. The defence stock saw strong buying momentum for second straight day after rising 8.6% in yeterday’s trading session.

Mazagon Dock stock rise comes after the company issued clarification through stock exchange notification on defence contract worth ₹99,000 crore. The company said share price surge is due to completed CNC (Contract Negotiation Committee) talks with the government for a ₹99,000 crore defence contract. The proposal has now been taken up for approval of the competent authority, which indicates the contract is still awaiting official approval.

As per business today report, this new defence contract is likely to be for six German submarines of Thyssenkrupp Marine Systems (TKMS) for the Indian Navy to be made in India by Mazagon Docks Limited (MDL) in Mumbai.

Shares of other defence companies are also trading higher today despite fall in broader markets. NIFTY India Defence index is trading 2.85% higher with Mtar Technologies (+6.8%), Mazagon Dock Shipbuilders (+7.4%), Garden Reach Shipbuilders(+6.2%), Bharat Electronics(+2.7%) being the top gainers. Meanwhile, Cochin Shipyard shares have gained 3.8% today.

As per experts defence stocks are in the focus as rising geopolitical tensions between the US, Israel and Iran have renewed investors interest in defence stocks amid expectations of higher orders and improved business prospects. Many defence stocks are also witnessing value buying following recent sell-off after the Middle East crisis.