Cochin Shipyard, GRSE, Mazagon Dock: Why shares of shipping companies rally up to 6% today
State-onwed defence stocks including Cochin Shipyard, Mazagon Dock Shipbuilders and Garden Reach Shipbuilders surged up to 6 per cent in the early trade on Monday.
- Sep 22, 2025,
- Updated Sep 22, 2025 11:42 AM IST
Shares of state-owned defence companies, related to the shipping sector, were seen flying higher on Monday after the government announced a significant policy decision to grant infrastructure status to large ships. Stocks including Cochin Shipyard, Mazagon Dock Shipbuilders and Garden Reach Shipbuilders & Engineers surged up to 6 per cent in the early trade.
The Ministry of Finance notified an updated Harmonized Master List of infrastructure sub-sectors on September 19, 2025, which includes ‘Large Ships’ under the Transport and Logistics category. This means that the large shipbuilding will also be considered under the infra sector.
Indian-owned and flagged commercial ships having a gross tonnage (GT) of 10,000 and above or Indian built, owned, and flagged commercial ships of 1,500 GT or more will be granted infrastructure status, giving an impetus for the Indian fleet owners.
The shipbuilding companies will now find it easier to secure loans from banks and will benefit from reduced interest rates, according to the official notification. All benefits associated with infrastructure financing will now be extended to these shipbuilding enterprises, providing a fresh boost to the shipping sector, and reducing the financial burden for them.
Following the announcement, shares of Garden Reach Shipbuilders & Engineers (GRSE) jumped more than 6.05 per cent to Rs 2761.65 on Monday, commanding a total market capitalization above Rs 31,000 crore. The Multibagger stock had settled at Rs 2,604.10 on Friday. It has tumbled 22 per cent from its 52-week high at Rs 3,535.
GRSE has signed five memorandums of understanding (MoUs) with strategic partners in the shipbuilding, port, and infrastructure sectors. It and its partners will explore and jointly develop projects across multiple domains. The defence firm also signed a contract with Carsten Rehder Schiffsmakler und Reederei GmbH & Co. KG in Hamburg, Germany, for the construction of four hybrid multipurpose vessels worth $62.44 million.
Cochin Shipyard shares jumped more than 4.15 per cent to Rs 1979.60, with its market valuations hitting Rs 51,000 crore mark. Mazagon Dock was seen rising at Rs 3,061, on Monday, up nearly 2.5 per cent for the day. The total mcap of the company hit Rs 1.2 lakh crore market. Both the stocks have tumbled 19-22 per cent from their respective 52-week highs.
Antique Stock Broking has coverage on all three stocks. It has a ‘buy’ rating for GRSE and Mazagon Dock with a target price of Rs 3,047 and Rs 3,858 respectively. However, it has suggested to ‘sell’ Cochin Shipyard with a target price of Rs 1,664.
Nirmal Bang Institutional Equities also has a ‘buy’ rating on Mazagon Dock with a target price of Rs 3,540. On the other hand, Elara Capital has reiterated ‘sell’ recommendation on GRSE and has lowered the target price to Rs 2,140 per share. IDBI Capital has a target price of Rs 2,100 on Cochin Shipyard with a ‘buy’ rating.
Shares of state-owned defence companies, related to the shipping sector, were seen flying higher on Monday after the government announced a significant policy decision to grant infrastructure status to large ships. Stocks including Cochin Shipyard, Mazagon Dock Shipbuilders and Garden Reach Shipbuilders & Engineers surged up to 6 per cent in the early trade.
The Ministry of Finance notified an updated Harmonized Master List of infrastructure sub-sectors on September 19, 2025, which includes ‘Large Ships’ under the Transport and Logistics category. This means that the large shipbuilding will also be considered under the infra sector.
Indian-owned and flagged commercial ships having a gross tonnage (GT) of 10,000 and above or Indian built, owned, and flagged commercial ships of 1,500 GT or more will be granted infrastructure status, giving an impetus for the Indian fleet owners.
The shipbuilding companies will now find it easier to secure loans from banks and will benefit from reduced interest rates, according to the official notification. All benefits associated with infrastructure financing will now be extended to these shipbuilding enterprises, providing a fresh boost to the shipping sector, and reducing the financial burden for them.
Following the announcement, shares of Garden Reach Shipbuilders & Engineers (GRSE) jumped more than 6.05 per cent to Rs 2761.65 on Monday, commanding a total market capitalization above Rs 31,000 crore. The Multibagger stock had settled at Rs 2,604.10 on Friday. It has tumbled 22 per cent from its 52-week high at Rs 3,535.
GRSE has signed five memorandums of understanding (MoUs) with strategic partners in the shipbuilding, port, and infrastructure sectors. It and its partners will explore and jointly develop projects across multiple domains. The defence firm also signed a contract with Carsten Rehder Schiffsmakler und Reederei GmbH & Co. KG in Hamburg, Germany, for the construction of four hybrid multipurpose vessels worth $62.44 million.
Cochin Shipyard shares jumped more than 4.15 per cent to Rs 1979.60, with its market valuations hitting Rs 51,000 crore mark. Mazagon Dock was seen rising at Rs 3,061, on Monday, up nearly 2.5 per cent for the day. The total mcap of the company hit Rs 1.2 lakh crore market. Both the stocks have tumbled 19-22 per cent from their respective 52-week highs.
Antique Stock Broking has coverage on all three stocks. It has a ‘buy’ rating for GRSE and Mazagon Dock with a target price of Rs 3,047 and Rs 3,858 respectively. However, it has suggested to ‘sell’ Cochin Shipyard with a target price of Rs 1,664.
Nirmal Bang Institutional Equities also has a ‘buy’ rating on Mazagon Dock with a target price of Rs 3,540. On the other hand, Elara Capital has reiterated ‘sell’ recommendation on GRSE and has lowered the target price to Rs 2,140 per share. IDBI Capital has a target price of Rs 2,100 on Cochin Shipyard with a ‘buy’ rating.