Defence sector stocks are in focus today. According to an ANI report, the Indian Navy could soon place an Rs 80,000 crore order for four Landing Platform Docks, a special warfare ship used for transportation and landing of cargo, vehicles and troops.
“The Defence Ministry is expected to soon take up the Indian Navy proposal, expected to be worth around Rs 80,000 crore, at a high-level meeting. The project would be one of the biggest for building surface warships in the country,” defence officials told ANI.
Defence sector stocks in focus
The Indian Navy has been pushing for increasing its amphibious warfare infrastructure for many years. As the Defence Ministry is likely to take up the Indian Navy’s proposal, it will not increase the Navy’s capabilities or transportation or deployment capabilities. The Rs 80,000 crore order will also give a major boost to several public and private defence sector companies in India.
Among the public sector companies, Mazagon Dockyard, Cochin Shipyard and Hindustan Shipyards are seen as the top contenders for the orders, as per the ANI report. These companies are likely to lead the contract from the Defence Ministry as the three companies work at the forefront of naval orders of the Defence Ministry. Private sector companies such as Larsen and Toubro and Navantia could also partner for design and production contracts.
In recent years, Mazagon Dockyard has received orders for 14 fast patrol vessels and Air Defence Propulsion for submarines. Similarly, Cochin Shipyard and HSL have also received orders such as docking tech for INS Vikramaditya and support ships, respectively.
Defence sector stock performance
In the last month, Mazagon Dock Shipbuilders’ stock has gained 11.5 per cent. In the last year, the Mazagon Dock’s share was up 39.45 per cent
Similarly, Cochin Shipyard’s stock was also up 13.5 per cent last month and 8.7 per cent in the last year.
Private sector company L&T gained just 1.7 per cent and was down 3.5 per cent in last one year period