Cochin Shipyard, ideaForge, GRSE and other defence stocks fall up to 7% as post-Sindoor rally unwinds
Live Events
Long-term outlook intact
(You can now subscribe to our
(You can now subscribe to our ETMarkets WhatsApp channel
Shares of Cochin Shipyard ideaForge Technology , Garden Reach Shipbuilders & Engineers ( GRSE ), and other defence-linked companies extended losses on Tuesday, falling up to 7% as investors continued to book profits following a sharp rally driven by optimism around fresh orders and the success of Operation Sindoor.Cochin Shipyard dropped as much as 6.9% to Rs 1,847.60 on the BSE, while ideaForge fell 6.1% to Rs 536.25. GRSE declined 5.1% to Rs 2,356.05, and Mazagon Dock Shipbuilders lost 3.1% to Rs 3,303.20.Tuesday's fall comes after Monday's broad retreat in defence stocks , when Cochin Shipyard, Mazagon Dock, GRSE and Hindustan Aeronautics Ltd (HAL) fell up to 4%.The sharp pullback follows a surge in defence counters last week, when Cochin Shipyard and GRSE gained 41% and 40% respectively, and drone maker ideaForge soared 56%. HAL also rose 16% over the week, amid investor enthusiasm for India's rising defence manufacturing capacity and export potential.The rally was sparked by the Indian military's high-profile demonstration of indigenous missile and drone capabilities under Operation Sindoor. The event, combined with expectations of large-scale defence orders, added Rs 1.8 lakh crore in market capitalisation to the sector between May 9 and May 17.However, the recent drop underscores investor caution in the short term. 'We see large orders being placed in FY26–27 led by the ordering of six submarines under P75I, three Kalvari-class submarines, next-generation Corvettes, and P-17B Frigates, besides a host of smaller vessels,' Antique Stock Broking said.Despite the correction, analysts remain bullish on the sector's long-term trajectory. Antique Stock Broking projects that the combined order books of Cochin Shipyard, GRSE and Mazagon Dock could more than triple by FY27. The brokerage has a 'buy' rating on Mazagon Dock and GRSE, while maintaining a 'hold' on Cochin Shipyard, citing uncertainty over the timing and scale of the proposed IAC-II (Indigenous Aircraft Carrier II).Antique sees visibility on Rs 2.12 lakh crore worth of orders over FY26–27, including Rs 36,000 crore for additional Kalvari-class submarines and another Rs 70,000 crore for the P75I program. The Defence Acquisition Council has already approved Rs 8.45 lakh crore in orders between FY22 and FY25—more than triple the approvals from the previous three-year period.Looking ahead, Antique noted, 'Looking beyond FY27, we see the next wave of large-scale orders led by Project-18 destroyers and the indigenous Project-76 submarine program.'The recent correction follows a historical pattern. The Nifty Defence index had surged 350% between July 2022 and July 2024, before dropping 38% by February 2025 amid concerns over valuations. The success of Operation Sindoor has since reignited interest, but Monday and Tuesday's declines suggest that near-term volatility may persist, even as the structural story remains intact.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
10 minutes ago
- Business Standard
BEML secures ₹293.81 crore defence order for 150 high mobility vehicles
BEML Limited, a Schedule 'A' public sector enterprise under the Ministry of Defence, on Wednesday said it has received an order worth Rs 293.81 crore from the Ministry of Defence for the supply of 150 indigenously designed high mobility vehicles (HMVs) 6x6. The vehicles will primarily be manufactured at BEML's Palakkad and Mysore plants, with additional production to be undertaken at other divisions based on operational feasibility, the PSU said in a statement. Designed to deliver high reliability and versatility, the 6x6 HMVs are built to operate effectively in extreme terrains, diverse climatic conditions and at high altitudes, it explained. Key features of the HMVs include an independent suspension system, a high-power air-cooled engine, a central tyre inflation system, an anti-lock braking system, and a backbone tube chassis design ensuring superior mobility, stability, and operational safety. "This order showcases BEML's expertise and capacity in delivering advanced indigenous products that enhances India's defence infrastructure," said Shantanu Roy, Chairman and Managing Director of BEML Ltd. "It also reinforces our ongoing support for the Government of India's Make in India initiative and our mission to empower the nation's armed forces with high quality, indigenously developed solutions," he added. The HMVs are expected to play a key role in general operations, delivering essential services and logistical support to some of the most remote and inaccessible areas in the country. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard
21 minutes ago
- Business Standard
Kaytex Fabrics Limited is planning to raise up to Rs. 69.81 crore from public offer; IPO opens on July 29, 2025
PNN New Delhi [India], July 23: Kaytex Fabrics Ltd, a digital textile printing company engaged in the manufacturing of fabrics, ready-to-stitch garments and accessories, is planning to raise up to Rs. 69.81 crore from its SME public offer. The company has received approval to launch its public offer on SME Platform of National Stock Exchange - NSE EMERGE. The public offer opens for subscription on July 29, 2025 and closes on July 31, 2025. Socradamus Capital Private Limited is the book running lead manager of the offer. The offer aims to raise funds for multiple objectives. Rs 2.56 crores will be utilized towards funding capital expenditure for construction of additional warehouse facility in Amritsar. Rs. 3.73 crores will be utilized for construction of dedicated sales office in Amritsar. Rs 5.01 crores will be directed towards purchase of advanced fabric processing system for the existing printing, dyeing and processing unit in Amritsar and Rs. 30 crores will be used to meet working capital requirements. The remaining proceeds will be used for general corporate purposes and issue expenses. Highlights:- * Public offer opens on July 29 and closes on July 31 2025 * For FY25 company reported revenue from operations of Rs. 152.79 crore and Net Profit of Rs. 16.90 crore * Socradamus Capital Private Limited is the book running lead manager of the issue. The initial public offering of up to 38,78,400 equity shares of face value Rs. 10 each comprises a fresh issue of up to 31,99,200 equity shares and an offer for sale of up to 6,79,200 equity shares by the promoters Sanjeev Kandhari and Amit Kandhari. Company has finalized price band of Rs. 171 - Rs. 180 per equity share for the public issue. The lot size is 800 Equity shares. Minimum lot size for individual bidders is 1,600 Equity shares and for non-institutional bidders is 2,400 Equity shares. The number of equity shares will increase from 1,15,00,000 before the offer to up to 1,46,99,200 after the IPO. Post-IPO, the Promoters will hold 73.61% of the equity, while the public will hold 26.39%. Incorporated in January 1996, Kaytex Fabrics Limited is a fast-fashion fabric solutions and manufacturing company that combines technology, design, and traditional craftsmanship to deliver textile and fashion products. The company specializes in creating fabrics from diverse fibres like cotton, viscose, modal, acrylic, nylon, linen and polyester. The company acts as a brand enabler for other apparel brands, has its own brands "Rasiya", "Kaytex", and "Darbaar-e-Khaas" and supplies under the non-branded segment as well. This approach supports the ability to meet the varied and changing requirements of the textile and fashion industries and enables the company to focus on serving a wide customer base. Business Highlights:- The company's revenue from operations for the Fiscal 2025 & Fiscal 2024 respectively was Rs. 152.79 crores & Rs. 124.94 crores respectively. For FY25, EBITDA was registered at Rs 30.06 crores as compared to EBITDA of Rs 22.43 crores reported in FY24. EBITDA margin for Fiscal 2025 & Fiscal 2024 was 19.68% & 17.95% respectively. Profit after tax for FY25 was Rs 16.90 crore, whereas for FY24 the company reported Rs 11.31 crore profit after tax. PAT margin for FY25 was 11.06% whereas for FY24 PAT margin was registered at 9.05%. IPO Highlights - Kaytex Fabrics Limited Kaytex Fabrics Limited is launching its SME public offer, opening for subscription on July 29, 2025, and closing on July 31, 2025. The company has set the price band for the offer at ₹171 to ₹180 per share. The IPO comprises a total of up to 38,78,400 equity shares, which includes a fresh issue of up to 31,99,200 shares and an offer for sale of up to 6,79,200 shares. At the upper price band of ₹180 per share, the total offer size is estimated at ₹69.81 crore. Post-issue, the equity shares of Kaytex Fabrics Limited will be listed on the NSE EMERGE platform. (ADVERTORIAL DISCLAIMER: The above press release has been provided by PNN. ANI will not be responsible in any way for the content of the same)
Time of India
24 minutes ago
- Time of India
Direct flight between capital & Jharsuguda from next month
Jharsuguda: In a major boost to regional connectivity within Odisha from VSS airport, Star Air has announced to run direct flights between Jharsuguda and Bhubaneswar starting from August 16. The route will operate with introductory fares starting at Rs 1,599 from Bhubaneswar to Jharsuguda and Rs 1,699 for the return journey. "This new route not only enhances intra-state connectivity in Odisha but also supports the growing demand for affordable and convenient regional travel," Shilpa Bhatia, chief commercial officer of the airlines, said. The new service is expected to significantly benefit both business and leisure travellers. Jharsuguda, often referred to as the industrial powerhouse of western Odisha, is home to key sectors such as coal mining, aluminium production and thermal power generation. On the other hand, Bhubaneswar is a thriving centre for administration, education and IT, making the route crucial for intra-state economic synergy. Previously, Alliance Air was operating direct flights from VSS airport to Bhubaneswar but suspended its services due to viability gap funding (VGF) issues. Although the VGF issue has been resolved, the airlines is yet to resume operations.
