Mazagon Dock, Cochin Shipyard, Garden Reach Achieve Record Highs; Add Rs 1.5 Lakh Crore to Market Capitalisation in 2024

India’s premier shipbuilders—Mazagon Dock Shipbuilders, Cochin Shipyard, and Garden Reach Shipbuilders—have reached unprecedented market capitalisation levels, collectively adding nearly Rs 1.5 lakh crore in 2024.

This remarkable surge follows earlier media reports that highlighted an initial increase of Rs 90,000 crore. In just 13 trading sessions since that report, these companies have added over Rs 60,000 crore to their market capitalisation.

Mazagon Dock Shipbuilders:

• Performance: Mazagon Dock’s shares have surged 151% in 2024. Starting the year with a market capitalisation of Rs 46,000 crore, the company’s value has more than doubled to over Rs 1.15 lakh crore.
• Government Stake: The Indian government holds an 84.83% stake, valued at over Rs 90,000 crore at the current market price.

Cochin Shipyard:

• Performance: Cochin Shipyard has outperformed its peers, with shares skyrocketing nearly 320% in the first half of the year. The market capitalisation has jumped from just over Rs 17,000 crore to more than Rs 75,000 crore, adding over Rs 58,000 crore to its value.
• Government Stake: The government holds a 72.86% stake, now worth Rs 55,156 crore.

Garden Reach Shipbuilders:

• Performance: Garden Reach shares have tripled, with market capitalisation surpassing Rs 30,000 crore for the first time this week, up from Rs 10,000 crore at the start of the year.
• Government Stake: The government maintains a 74.5% stake in the company.

Historical Context: The surge in these shipbuilders’ market value is underpinned by India’s record growth in defence production value, which reached Rs 1.26 lakh crore in the financial year 2024, marking a 16.8% increase from the previous year. This growth aligns with India’s broader strategic goals to become a leading global defence manufacturing hub and achieve defence exports worth Rs 50,000 crore over the next five years.

Order Books:

• Mazagon Dock: Exceeds Rs 38,000 crore.
• Garden Reach and Cochin Shipyard: Each has order books of over Rs 22,000 crore.

Stock Performance:

Mazagon Dock Shipbuilders:

• 1 Month: 103.89% return
• 6 Months: 152.29% increase
• Year-to-Date: 149.28% surge
• 12 Months: 338.09% return

Cochin Shipyard:

• 1 Month: 67.64% return
• 6 Months: 314.47% increase
• Year-to-Date: 315% surge
• 12 Months: 906.41% growth

Garden Reach:

• 1 Month: 131.07% return
• 6 Months: 215.88% increase
• Year-to-Date: 212.19% surge
• 12 Months: 380.29% growth

Summary:

• Mazagon Dock, Cochin Shipyard, and Garden Reach have collectively added Rs 1.5 lakh crore to market capitalisation in 2024.
• Mazagon Dock shares surged 151%, Cochin Shipyard shares skyrocketed 320%, and Garden Reach shares tripled.
• India’s defence production value reached Rs 1.26 lakh crore in FY 2024, a 16.8% increase from the previous year.
• The Indian government holds significant stakes in these companies, valued at tens of thousands of crores.
• Order books for these companies are robust, exceeding Rs 22,000 crore each.
• Stock performance has been exceptionally strong across various time frames, indicating sustained growth and investor confidence.

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