PSU Defence stocks are increasing like a bullet train these days ahead Budget 2025. These price surges are because of the effort by the government of India to develop and fortify the defence sector. Keeping the budget 2025 announcement in mind, a lot of buying has been seen in the PSU defence stocks such as Mazagon Dock, Bharat Dynamics, Cochin Shipyard and HAL.
Every defence stock has given impressive returns within a short period. One of them is Mazagon Dock Shipbuilders, which has delivered great returns. In fact, the PSU defence stock surged nearly 8% today during the early trading session on January 20. The Stock has climbed 18% in the last 5 trading sessions and doubled the investors money in the last one year.
Mazagon Dock Shipbuilders is a shipbuilding defence company under the administrative control of the Ministry of Defense.
Mazagon Dock Share Price
The shares of Mazagon Dock Limited rose 8% to an intraday high of Rs 2496.30 on Monday, January 20. However, the stock has experienced massive corrections in the past 6 months after the interim Budget 2024. The share price of Mazagon Dock has a 52-week low of Rs 897.70 and high of Rs 2,930. With this market Cap of the company reached Rs 1,14,676.90 crore. These surges are pre-budget rallies.
The IPO of Mazagon Dock Limited came at a price of Rs 135 to Rs 145. It got listed at Rs 216.25 on stock exchanges in October 2020. Within just 3 years the share price has skyrocketed since April 2022. Before that it was trading nearly Rs 150 per share. Now it has crossed Rs 2,900 level.
Also Read: IRFC Share Price Target From today to 2025
Multibagger Returns of 2,800%
The shares of Mazagon Dock have delivered marginal returns more than 9% this year so far. In the last month. It has gained as much as 3.14%
Mazagon Dock shares have given a multibagger return more than 115% in the last one year and a multibagger return of 2,800% in the last 5 years.
Experts View on Mazagon Dock and Other Defence Stocks
Vivek Karwa, CEO of Vriddhi Investment, said that buying defence PSU stocks at this price level is risky. These Stocks are rising amid the increased budget announcement.
According to him, valuations of defence PSU stocks are very high. Profit booking will soon be seen in these shares after Budget 2025 so Investors should book profit in the short-term. Investors expect a huge budget expenditure just like 2024 so it is gaining traction before the budget announcement. So he advised, to buy these stocks during the dips or to stay away from these stocks now.
Defence stocks like BEL, HAL, Cochin Shipyard, Bharat Dynamics Ltd, Paras Defence, BEML, Premier Explosives etc have seen tremendous rise in recent years. That’s why these stocks have been attractive options for Investors. However, investors should keep an eye during the dips for safe investment.
Notably, with the significant increase in defence expenditure by the government in the last few years, investing in defence stocks has become an attractive option in the market. Shares of many companies like Bharat Electronics, HAL, Paras Defence and others have given multibagger returns. These companies have strong government contracts.
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