Defence stocks experienced a significant decline on Tuesday following a corrective action, with Mazagon Dock Shipbuilders Ltd. and Garden Reach Shipbuilders & Engineers Ltd. experiencing significant declines of up to 8.59% and 7.98%, respectively.
"Overall, the first half of the fiscal has been slightly muted on order inflows when compared to the high base of last year. Intake is expected to be back-ended this year," said Amit Anwani, research analyst, PL Capital at Prabhudas Lilladher.
The analyst had predicted a correction due to the extremely high valuations. "The execution might be slightly impacted as the global supply chain is affected by the ongoing wars," he said.
Mazagon Dock Shipbuilders share price fell as an initial boost from setting a record date for its fiscal 2025 dividend payment waned. The company announced Oct. 30 as the record date for the dividend on equity shares, according to an exchange filing on Oct. 17. The stock ended its two-day winning streak, reversing gains shortly after the market opened.
Over the past two sessions, the shares had risen 3.1%. The board will meet on Tuesday to decide on a stock split and dividend declaration for fiscal 2025, with further details on the dividend awaited, the company said on Monday in an exchange filing.
Most other defence stocks fell, largely due to a correction in the overvalued defence sector.
Mazagon Dock Shipbuilders fell as much as 8.59% to Rs 4,265.65.
Garden Reach Shipbuilders & Engineers fell as much as 7.98% to Rs 1,660.05.
Bharat Dynamics Ltd. fell as much as 5.10% to Rs 1,060.
Cochin Shipyard Ltd. fell as much as 4.29% to Rs 1,465.
Zen Technologies fell as much as 5.12% to Rs 1,767.10.
Paras Defence Ltd. fell as much as 3.63% to Rs 980.
HAL Ltd. fell as much as 3.29% to Rs 4,365.80.
Bharat Forge Ltd. fell as much as 2.11% to Rs 1,412.
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