Garden Reach Shipbuilders, other defence stocks surge up to 9%, end week on a high

Shares of India’s defence companies, Garden Reach Shipbuilders, BEML, Bharat Dynamics, have gained between 5% and 7% on Friday, September 12, and are set to end the week on a high.

Companies like MTAR Technologies are leading the gains among the defence stocks, surging over 9%, while Paras Defence shares are also up 5% on the back of an order win worth ₹26 crore.

In an interaction with CNBC-TV18 on Thursday, the management of MTAR Technologies said that they are aiming to double their revenue to between ₹1,500 crore to ₹1,600 crore by financial year 2028.

The management also said that clean energy segment is set to generate at least 100% higher revenue by the next financial year and that they are expecting huge orders from the nuclear division. MTAR Tech also has enough capacity and technology to handle incremental orders, according to the management.
All six analysts who have coverage on MTAR Technologies have a “buy” rating on the stock.

According to reports, a team from the US Defence Department and executives from Being are likely to visit India next week to negotiate the sale of six P-8I Naval Patrol aircraft.

Brokerage firm Antique Stock Broking had recently written a note on Garden Reach Shipbuilders, where it maintained its “buy” rating on the stock and a price target of ₹3,047, which is the third highest among the six analysts who have coverage on the stock.

In a separate exchange filing earlier this week, Mazagon Dock Shipbuilders stated that the company has finally begun negotiations with regards to the P-75I submarine orders, which analysts have cited to be a key trigger for the stock.

Shares of MTAR Technologies are up 9% on Friday, followed by Garden Reach, BEML and Astra Micro are trading with gains between 7% to 8%.