Defence Checkpoint: Garden Reach, Bharat Dynamics, Cochin Shipyard Gain, HAL, Data Patterns Down At Noon
The NSE Nifty India Defence was up 0.11% as of noon, but saw the lowest gains among other sectors in green on Friday.
Defence stocks pared gains from market open to see volatile trade on Friday. Shares of Garden Reach Shipbuilders and Engineers Ltd., Bharat Dynamics Ltd., Cochin Shipyard Ltd., and Mazagon Dock Shipbuilders Ltd. led the rally, while Ideaforge Technology Ltd., Mishra Dhatu Nigam Ltd., and Hindustan Aeronautics dragged the sector down.
The NSE Nifty India Defence was up 0.11% as of noon, but saw the lowest gains among other sectors in green on Friday. It had slipped as low as 1.09% through the day, after opening at a 0.86% high.
Bharat Electronics Ltd. has received its highest share price target from UBS, which upgraded the stock from a 'neutral' to a 'buy' rating after its fourth-quarter financial results.
The revised target price of Rs 450 from Rs 320 earlier implies an upside potential of 17% over the previous close.
The investment bank cited a sharp order book ramp up, accelerating margin-accretive revenue, and upside risk for consensus estimates due to recent favourable developments.
Based on projections for stronger earnings growth and a quicker ramp-up of the order book over the next three years, UBS now prefers BEL over Hindustan Aeronautics Ltd.
They rate HAL as 'neutral' with a price target of Rs 5,600, which shows an upside potential of 11%.
Defence Stocks Share Price Today
Among the defence stocks, Garden Reach was leading the gains, up 2.02% at Rs 2,812 as of 12:05 p.m. Bharat Dynamics followed closely with a 1.63% increase, hitting Rs 1,956 apiece.
Cochin Shipyard also performed well, up 1.31% to Rs 1,928.80 per share, while Mazagon Dock increased by 1.06% to Rs 3,537.
The lag was led by Ideaforge Technology, which was down 2.81% to Rs 529.95 apiece, while Mishra Dhatu Nigam and HAL followed suit, down 1.06% and 0.79%, respectively.
Other stocks which saw a sharp decline include DCX Systems, which slid 0.77% to Rs 329.40 apiece, Zen Technologies, down 0.74% to Rs 1,874.90, and Data Patterns (India), which fell 0.60% to Rs 2,724.30 per equity share.
The benchmark NSE Nifty 50 was 0.96% higher as of 12:10 p.m.
