Mazagon Dock, GRSE could see order book tripling by 2027; Check Antique's price targets
Published on 13/05/2025 01:03 PM
Mazagon Dock, GRSE could see order book tripling by 2027; Check Antique's price targetsThe Defence Acquisition Council has approved orders worth ₹8.45 lakh crore over FY22–25, which is almost 3.3 times higher than in the previous three years. Antique expects this to result in huge order inflows in FY26–27 for defence shipyards.By Meghna Sen May 13, 2025, 1:03:30 PM IST (Published)2 Min ReadThe order books of listed defence shipyards are expected to triple over the next two years, according to brokerage firm Antique Stock Broking in its latest report on India's defence sector.
Antique has a 'Buy' rating on Mazagon Dock Shipbuilders and Garden Reach Shipbuilders & Engineers, with price targets of ₹3,433 and ₹2,024, respectively. It maintains a 'Hold' rating on Cochin Shipyard, with a target price of ₹1,481.
While defence sector stocks experienced a price correction between July 2024 and March 2025, there was a strong rebound in April, primarily triggered by geopolitical tensions along the western border and the government’s approval of defence orders worth ₹54,000 crore.
This recovery has also been supported by a broader improvement in investor sentiment.
Given the long-term earnings potential of defence shipyards, Antique expects these stocks could trade at up to 45 times FY27 core earnings.
The brokerage continues to maintain its positive stance on Mazagon Dock and Garden Reach. However, it mentioned that the outlook for Cochin Shipyard remains dependent on the ordering of a second indigenous aircraft carrier (IAC-II). Due to ongoing uncertainty around the urgency and specifications of the vessel, Antique has tempered its stance on the stock.
The Defence Acquisition Council has approved orders worth ₹8.45 lakh crore over FY22–25, which is almost 3.3 times higher than in the previous three years. Antique expects this to result in huge order inflows in FY26–27 for defence shipyards.
Additionally, the brokerage said that mega orders worth ₹2.35 lakh crore are lined up for FY26–27, which is approximately 3.1 times the combined current order book of the three listed defence shipyards.
According to Antique, the procurement pipeline for defence warships is substantial, although it is often subject to multi-year delays. Based on industry interactions, the brokerage said it has confidence and visibility on key big-ticket orders worth Rs 2.12 lakh crore likely to be placed during FY26–27.
Shares of three companies including Mazagon Dock Shipbuilders Ltd., Garden Reach Shipbuilders & Enginers Ltd., and Cochin Shipyard Ltd. are currently trading over 4% higher.Continue ReadingCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsCochin Shipyarddefence stocksGarden Reach ShipbuildersMazagon Dock Shipbuilders