The share prices of defense-related companies have been rising sharply for three days now. Compared to Monday, share prices of major defense companies are on the rise as they continue releasing their quarterly results.

A majority of these stocks saw a spike in their prices today. Here are two stocks that gained up to 18% and hit new 52-week highs.

Cochin Shipyard

The stock rose by 17.44% on Wednesday’s session from Rs. 686.90 to reach its new 52-week high of Rs. 822. The stock jumped after it reported robust Q1 results for FY23.

The firm reported Rs. 98 crores as Net Profit which is an increase of 133% YoY from Rs 42 Crore in Q1FY22. Compared to the previous quarter, the revenue has seen a downfall of 20% from Rs. 600 crores reported in March Quarter to Rs. 475 crores in June Quarter.

The stock’s return on equity and capital employed have been slashed in almost half and the quarterly revenue has been reported Rs. 150 crores less than the last quarter.

Cochin Shipyard is India’s largest shipbuilding and maintenance company. It was incorporated in 1972 by the Government of India. The company also builds supply vessels and oil- tankers.

Garden Reach Shipbuilders

The stock saw a spike of 18.07% from Rs. 656 to Rs. 774 in its stock which is growing at an annual growth rate of 178.94%. The stock has a market cap of Rs. 8,892 crores and has reported a profit of Rs. 77 crores. 

The net profit rose by 54% from Rs. 55 crore in March 2023 to Rs. 77 crore in June 2023 and its return on equity has gone from 15.06% to 16.13%. The total revenue for the June quarter of 2023 has grown by 25% from Rs. 601 crores to Rs. 755 crores.

Garden Reach Shipbuilding is engaged in shipbuilding and repairing vessels. Both of these government-owned companies earn their major revenue through exports, healthy project pipelines, and the government’s support for domestic manufacturing of defense equipment.

Written by Bhumika Khandelwal

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