Defence Stocks BEL, BDL, HAL Rallied After Recent Correction

On February 19, 2025, defence stocks saw a significant uptick, with shares of Cochin Shipyard surging by over ~7% around 1:00 PM, rebounding after nearly a 60% drop over the past seven months.

Cochin Shipyard Signed MoU

Cochin Shipyard Limited (CSL) has signed a Memorandum of Understanding (MoU) with A.P. Moller–Merks to explore potential collaborations in ship repair, maintenance, and shipbuilding within India. This partnership aligns with the Government of India’s Vision 2047 maritime goals and the recent Union Budget 2025-26 announcements aimed at positioning India as a top global maritime hub. The MoU covers several key areas, including: sharing technical expertise to meet global standards in ship maintenance, exploring opportunities for ship repair, dry docking, and new builds, developing joint training programs to promote responsible practices, and offering skill development initiatives for both CSL employees and Maersk seafarers.

BEL, BDL and HAL Record Buying Interest

Other defence stocks such as Hindustan Aeronautics Ltd. (HAL), Bharat Dynamics Ltd. (BDL), Bharat Electronics Ltd. (BEL), and Garden Reach Shipbuilders Ltd. (GRSE) also saw strong buying interest during Wednesday’s trading session.

Bharat Dynamics Ltd. saw its stock climb by over 9%, while Hindustan Aeronautics Ltd. gained 2%. Garden Reach Shipbuilders rallied by 15%.

In a major boost to the government’s ‘Aatmanirbhar Bharat’ initiative, the Ministry of Defence signed a contract on December 12, 2024, with Hindustan Aeronautics Limited (HAL) for the procurement of 12 Su-30MKI aircraft, along with associated equipment, for an approximate cost of ₹13,500 crore, inclusive of taxes and duties. The aircraft will have 62.6% Indigenous content, thanks to the indigenization of many components produced by the Indian defence industry. These aircraft will be manufactured at HAL’s Nasik division, enhancing the operational capability of the Indian Air Force and strengthening the country’s defence readiness.

Bharat Dynamics Ltd. (BDL) has signed a ₹2,960 crore contract with the Ministry of Defence to supply Medium-Range Surface-to-Air Missiles (MRSAM) for the Indian Navy.

Bharat Electronics Limited (BEL), a Navratna Defence Public Sector Undertaking, has signed a ₹610 crore contract to supply an Electro-Optic Fire Control System (EOFCS) for the Indian Navy. This fully indigenous system will be installed and integrated into Indian naval platforms. The system is capable of panoramic and sector searches, tracking various targets during both day and night and engaging these targets with medium and short-range gun mounts.

Garden Reach Shipbuilders Ltd. (GRSE) has a robust order book, with ongoing projects progressing well. The company expects to secure more orders in the coming months to further strengthen its order book position.

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