Mazagon Dock, Cochin Shipyard, GRSE shares slip up to 35% from 52-week highs; more pain ahead?

Shares of defence sector firms such as Mazagon Dock Shipbuilders, Cochin Shipyard and Garden Reach Shipbuilders have fallen up to 35% from their 52-week highs amid profitbooking in the defence sector stocks. While Mazagon Dock stock has slipped 33%, Cochin Shipyard shares declined 35% during the same period. Garden Reach Shipbuilders stock too slipped 31% from its yearly high on profitbooking and volatility in the broader market due to the India-US tariff barriers. 

Mazagon Dock Shipbuilders 

The defence stock hit its 52 week high of Rs 3778 on May 29, 2025. Since then, the Mazagon Dock stock has corrected 33% till date. 

Meanwhile, Phillip Capital has assigned a price target of Rs 3,200, an upside of 36% from current levels.  

The brokerage is of the view that MDL stays the sector’s flagship beneficiary. "With commercial negotiations for P-75 (repeat) and P-75(I) progressing, Mazagon Dock is poised to win Rs 1 lakh crore plus of high-value orders soon. This next ordering cycle builds on its strong execution of P-15B destroyers and P-17A frigates, reinforcing its long-term role in submarine capability. The brokerage values Mazagon Dock at 42x FY28 EPS.

Another brokerage MOSL sees strong prospect pipeline for Indian defence players across platforms. Referring to Mazagon Dock, MOSL said it has a strong pipeline with major upcoming programs such as the LPD, MCMV, the follow-on P17 Bravo, and the next-generation destroyer, and indicated that its order book is expected to cross Rs 1 lakh crore by FY27 as these opportunities materialise.

In the previous session, the stock gained 1.16% to Rs 2,540.70. Mazagon Dock's market cap stood at Rs 1.02 lakh crore on BSE. 

Total 0.48 lakh shares of the firm changed hands amounting to a turnover of Rs 12.15 crore. Mazagon Dock shares are trading higher than the 5 day, 10 day, 20 day but lower than the 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

Cochin Shipyard

The defence stock hit its 52 week high of Rs 2547.25 on June 6, 2025. Since then, the stock has corrected 35% till date. 

Phillip Capital has initiated a BUY rating and a target of Rs 2,175, valuing Cochin Shipyard at 45x FY28 EPS.

"The firm offers one of the strongest multi-year growth trajectories in the sector, anchored by its unique role as India’s only aircraft-carrier builder, a growing defence order book (NGMV, ASW-SWC), a recovering commercial shipbuilding business, and a structurally expanding repair/MRO franchise that offers significant optionality. Its mix of defence, commercial and high-margin repair work, combined with rising yard utilization and capacity upgrades, positions it well for operating leverage over FY26–30," said the brokerage. 

MOSL said Cochin Shipyard's management highlighted a strong defence and commercial order pipeline, with multiple projects already bid and several others at RFI/RFP stages. Defence pipeline includes major programs such as MCMVs, P-17 Bravo, LPDs, NG Survey Vessels, NG Fast Patrol Vessels, etc. 

In the previous session, the stock gained 0.15% to Rs 1649.30. Cochin Shipyard's market cap stood at Rs 43,360 crore on BSE. 

Total 0.46 lakh shares of the firm changed hands amounting to a turnover of Rs 7.69 crore. The defence stock is trading higher than the 5 day, 10 day, 20 day, 30 day but lower than the 50 day, 100 day, 150 day and 200 day moving averages.

GRSE 

GRSE shares hit a 52 week high of Rs 3535 on June 23, 2025. The stock has fallen 31% since then. 

Brokerage Phillip Capital has initiated coverage on Garden Reach Shipbuilders stock with a price target of Rs 2,800. 

"While earnings growth is expected to moderate from FY27, GRSE’s order book is robust and its opportunity pipeline is deep. Initiate with a BUY and a target of Rs 2,800, valuing it at 38x FY28 EPS," said Phillip Capital.  

Referring to GRSE, MOSL said GRSE’s ordering outlook is very strong, with multiple large defense projects ahead. 

"Three RFPs have already been issued, and seven major AoN-approved projects offer a significant pipeline, and management expects the order book to cross INR500b once the Next-Generation Corvette contract is signed," added MOSL. 

In the previous session, the stock gained 1.37% to Rs 2453.80. GRSE's market cap stood at Rs 28,119 crore on BSE. 

Total 1.38 lakh shares of the firm changed hands amounting to a turnover of Rs 34.06 crore. The defence stock is trading higher than the 5 day, 10 day but lower than the 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

Defence sector overview 

Meanwhile, in terms of a consolidated position, Phillip Capital is of the view that India's defence shipbuilding sector stands at the threshold of a multi-decade transformation and is evolving from a fragmented, policy-dependent industry, into a strategic manufacturing and defence pillar. 

Despite handling 95% of its trade through maritime routes, India has less than 1% share in global ship production, said Phillip Capital. 

The government has outlined a naval modernization pipeline nearing Rs 2.3 lakh crore, and 75% of procurement reserved for domestic vendors, Mazagon Dock, Cochin Shipyard and Garden Reach enjoy robust, multi-year revenue visibility, added Phillip Capital.