Stocks In Focus: Why Are Garden Reach Shipbuilders, Mazagon Dock And Cochin Shipyard Shares Surging?

Shipbuilding stocks, including Mazagon Dock Shipbuilders, Garden Reach Shipbuilders & Engineers and Cochin Shipyards, jumped up to 8% on Thursday, led by a strong buying momentum in the overall defence sector.

Mazagon Dock Shipbuilders shares led the gains with 8.5% rally, while Cochin Shipyard stock price gained 5.96%, and Garden Reach Shipbuilders & Engineers (GRSE) shares surged as much as 5.35%.

The rally in defence stocks lifted the Nifty India Defence index by 3.27%, with Mazagon Dock Shipbuilders shares being the top gainer.

Domestic brokerage firm ICICI Securities maintained its structurally positive stance on the Indian defence sector, citing supportive government policies, evidenced by the Ministry of Defence's Rs 3 lakh crore annual capital outlay target by the calendar year 2029.

This support implies a sustained double-digit CAGR in defence capex, it noted.

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Given that DAC approvals were at an all-time high in FY26 and continued in Q1FY27, ICICI Securities expects the order awarding momentum to pick up in FY27-FY28.

According to the brokerage firm, the Indian Navy may receive the long-awaited Rs 70,000 crore submarine orders soon. 

“The geopolitical backdrop continues to provide a structural tailwind, as the conflict in the Middle East has reinforced defence budget urgency across GCCs. Indian OEMs with established export track records or MoUs are likely to benefit disproportionality, especially in the areas of missiles, drones, aerospace, defence electronics and radars,” said ICICI Securities.

For Mazagon Dock Shipbuilders, ICICI Securities expects order opportunity of six P-75 (I) submarines, extension of P75 order for three additional submarines, next-gen destroyers, and eight next-gen frigates. Besides, it also expects a steady inflow of MRLC orders.

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For Garden Reach Shipbuilders, order opportunity includes Coastal research vessel, Next-Generation (NG) Corvette, NG large survey vessels, NG fast patrol vessels, NG ocean going patrol vessels, multi-purpose vessels, fast interceptor vessels, water jet FAC, P17B, mine counter measure vessels, and NG destroyer.

Here's what technical charts of Mazagon Dock Shipbuilders, GRSE and Cochin Shipyards shares indicate.

Mazagon Dock Shipbuilders

Mazagon Dock Shipbuilders share price had been consolidating within the Rs 2,368 – Rs 2,424 range over the last three trading sessions before delivering a decisive breakout, supported by healthy volumes, noted Sudeep Shah - Head of Technical and Derivatives Research at SBI Securities.

“Mazagon Dock Shipbuilders stock price is now trading above the upper Bollinger Band, reflecting strong momentum and expanding volatility. The Rs 2,420 – Rs 2,400 zone is expected to act as immediate support, and the stock is likely to extend its up move as long as it holds above this zone,” said Shah.

GRSE

According to Shah, GRSE share price has witnessed a strong pullback and is now trading above its 200-day EMA, reflecting an improvement in the broader trend. The RSI has rebounded from the 40 mark, indicating renewed bullish momentum. Additionally, the DI+ has crossed above the DI- in the ADX indicator, suggesting that buyers are regaining control. 

“The Rs 2,480 – Rs 2,470 zone is likely to act as immediate support, and GRSE stock price is expected to extend its up move as long as it remains above this zone,” he added.

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Cochin Shipyard

Cochin Shipyard share price had been consolidating within the Rs 1,356 – Rs 1,444 range on the daily chart since July 8, and the stock has now broken out above this range, signalling a potential continuation of the uptrend. 

“The RSI is trending higher, indicating improving near-term momentum. The Rs 1,420 – Rs 1,400 zone is likely to act as immediate support, and the stock is expected to extend its up move as long as it sustains above this zone,” said Shah.

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