Defense stock: Budget Day i.e. February 1, Majgaon Dock Shipbuilders Limited (Mazagon dock), Cochin Shipyard (Cochin shipyard) And Garden Reach Shipbuilders Limited (Grase) Selling was observed in shares. Shares of these defense companies are now in focus next week. Actually, these public sector companies will release the results of the FY25 December quarter next week. In such a situation, action can be seen once again in these shares.
Quarterly results will come next week
Majgaon Dock has reported that it is going to announce the results of its December quarter on Friday, 7 February. The stock was a better performance than its peers during the September quarter. It recorded the margin expansion as well as strong revenue and profit growth.
The Garden Reach will be the first of the three companies to declare its results on Monday, 3 February. Along with its results, the garden will also consider releasing the interim dividend to the rich shareholders, for which it has already set a record date Friday, 7 February. The price of Garden Reach’s share is half with its peak.
Cochin Shipyard is currently under Stage 1 of Additional Surveillance Major (ASM) Framework. The company will hold its board meeting on Thursday 6 February, in which its quarter results will be approved. This stock is about half of its 2024 peaks.
Extended allocation in budget
Explain that a provision of Rs 6.81 lakh crore has been made in the defense budget for FY 2026. This is 9.5 percent higher than the previous financial year. Capital Expenditure is Rs 1,92,387 crore, while the Revenue Expenditure is Rs 4,88,822 crore, including Rs 1,60,795 crore for pension.
48,614 crore has been allocated for aircraft and aero engines under Capex and Rs 24,390 crore for naval fleet. In addition, Rs 63,099 crore has been fixed for other equipment. However, despite this, selling was seen in the shares of all defense companies on Budget Day.
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