Mazagon Dock Shipbuilders, Cochin Shipyard and Garden Reach Shipbuilders & Engineers gain 2-3%

Shares of these three firms have rallied significantly this year, having added close to ₹90,000 crore of market cap in the first half of 2024. However, over the last few weeks, the stocks witnessed significant profit booking.

Over the last month, Garden Reach Shipbuilders lost nearly 30% of its market cap while Cochin Shipyard is down by nearly 21%. Mazagon Dock, too, has lost over 16%.

Defence and shipbuilding stocks have been in focus recently after Defence Minister Rajnath Singh said in June that the country’s target will be to export over ₹50,000 crore worth of defence equipment by 2028-2029.

Cochin Shipyard recently announced it has commenced the commercial operations at its International Ship Repair Facility (ISRF) by successful docking of the vessel ‘HSC Parali’ of Union Territory of Lakshadweep Administration. Cochin Shipyard said the ISRF project costing ₹970 crore is set up in 42 acres of leased premises of the Cochin Port Authority at Willingdon Island, Kochi.

The ISRF is equipped with 6000 tonnes ship-lift, six workstations and approximately 1,400 metre of berths, suitable for handling vessels of maximum 130 metre length. The facility can repair six such vessels at the dry-workstations simultaneously, it said.

Meanwhile, Mazagon Dock recently notified about an award of contract from Oil and Natural Gas Corporation (ONGC) for wellhead platforms and associated pipeline project (DSF-II) on EPC reimbursable basis at the ceiling price of ₹4,676 crore. The order has to be executed by May 2026.

Despite the recent correction, Mazagon Dock (94%), Cochin Shipyard (209%) and Garden Reach Shipbuilders (107%) are sitting on significant gains this year.