Mazagon Dock, Cochin Shipyard, and Other Shipping Stocks Surge Up to 8%

Tanushree Jaiswal

Last Updated: 4th July 2024 - 05:15 pm

On July 4, shares of shipping companies such as Cochin Shipyard and Mazagon Dock surged by up to 7%. These PSU stocks have experienced a significant rally recently, as investors anticipate that announcements in Budget 2024 will further boost their performance.

Veteran investor Raamdeo Agrawal believes that despite the recent upmove, PSUs are still trading in single-digit PE multiples.

The stocks also rose due to strong Q1 earnings expectations. In its June quarter earnings preview note, Antique Stock Broking predicted that the combined sales of eight defense companies—Mazagon Dock, Cochin Shipyard, Bharat Dynamics, BEML, Hindustan Aeronautics, Bharat Electronics, PTC Industries, and Garden Reach Shipbuilders & Engineers Ltd—could increase by 27% year-over-year.

The defense sector is currently benefiting from a favorable environment, driven by the government's emphasis on defense indigenization under the 'Make in India' initiative.

Mazagon Dock Shipbuilders share price Ltd. surged over 6%, reaching a new record high of Rs 4,989.95 on the National Stock Exchange (NSE), which pushed the company's market cap past Rs 1 lakh crore. The stock has increased by around 10% over the last five trading sessions.

The multibagger stock has more than doubled investors' money in 2024, achieving gains of 115%. Over the past year, the stock has risen by over 284%.

Cochin Shipyard shares soared over 8%, reaching a new record high of Rs 2,643.00 on the NSE. The stock has delivered remarkable returns of over 820% in the past 12 months. Garden Reach Shipbuilders & Engineers shares also rose over 4%, hitting a high of Rs 2,574.95.

Shipping Corporation of India (SCI) stock increased by over 1%, Dredging Corporation of India rose by more than 1.4%, and SEAMEC shares went up by 1.6%.

How do you rate this article?

Characters remaining (1500)

View All

Disclaimer: Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

FREE Trading & Demat Account

+91