Kerala-based Cochin Shipyard among top gainers in post-Sindoor defence stock rally

Shares of Cochin Shipyard, a public sector shipbuilding company under the Union Government and based in Kerala, jumped nearly 14% on Wednesday. This came as part of a broader rally in defence-related stocks after the Indian government highlighted the role of indigenous defence systems during Operation Sindoor.

Defence stocks see sharp rise

The Nifty India Defence Index rose over 3% on the day, extending its winning streak to four sessions with a total gain of nearly 13%. The rise followed Prime Minister Narendra Modi’s praise for the country’s defence preparedness and indigenous military technologies.

Among the major gainers, Garden Reach Shipbuilders & Engineers (GRSE) led with an 18.25% jump. Cochin Shipyard followed with a 13.94% increase, taking its share price to ₹1,797.10. Other defence-linked companies, including Mishra Dhatu Nigam, Mazagon Dock Shipbuilders, and DCX Systems, also recorded notable gains ranging from 5% to 10%.

Shipbuilding JV proposal adds to momentum

A report by Times of India suggested that Cochin Shipyard may be involved in setting up a ₹10,000-crore shipyard in Thoothukudi, Tamil Nadu, through a joint venture with South Korea’s HD Hyundai. The proposed project is expected to be supported by government policies aimed at expanding India’s presence in global shipbuilding.

Broker view highlights opportunities and concerns

According to Antique Stock Broking, defence shipyards may see their order books more than triple over the next two years. The brokerage continues to recommend GRSE and Mazagon Dock shares as ‘Buy’, while maintaining a ‘Hold’ rating on Cochin Shipyard.

Antique pointed to uncertainty surrounding the potential order for a second Indigenous Aircraft Carrier (IAC-II) as a reason for its cautious approach. It also noted that while large-scale defence orders worth ₹2.12 lakh crore are expected during FY26–27, project timelines may be subject to delays.

Strong sector activity led by GRSE

GRSE’s recent performance included a doubling of profits to ₹224 crore in the March quarter, compared to ₹112 crore a year ago. The company attributed this to production maturity and clear visibility of orders, including those from the commercial shipbuilding segment.

While Mazagon Dock Shipbuilders shares were up 4.29% to ₹3,131, the report noted that key upcoming defence contracts, including repeat orders for Kalvari-class submarines and the P75I submarine project, could benefit shipyards through FY26–27. These contracts are expected to follow both nominated and competitive bidding processes.