BDL, Cochin Shipyard, other defence shares rise up to 2.5% on Rs 79,000-crore procurement boost

BDL, Cochin Shipyard, other defence shares rise up to 2.5% on Rs 79,000-crore procurement boost

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26 Aug, 2025 12:21

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Shares of defence companies rose on October 24, a day after Defence Acquisition Council approved various army contracts totaling to an amount of Rs 79,000 crore.

Shares of defence manufacturers Bharat Dynamics, BEML, Garden Reach Shipbuilders and Engineers, Cochin Shipyard, Paras Defence, Bharat Electronics, Mazagon Dock and Mishra Dhatu rose between 0.78% and 2.72% on October 24.

The DAC approvals open up new opportunities for key domestic defence players like Bharat Electronics, Bharat Dynamics, GRSE, and others, said ICICI Direct Research.

One of the biggest DAC order allocation is likely to go to Bharat Dynamics. BDL makes both Light Weight Torpedos and NAG Missile systems.

Ground Based Mobile ELINT System (GBMES) are made by BEL. High Mobility Vehicles (HMVs) with Material Handling Crane are made by BEML. 30mm Naval Surface Gun (NSG) are made by Garden Reach Shipbuilders.

It is the second major decision on procurement following Operation Sindoor.

So far in 2025, Garden Reach Shipbuilders rose 63% while Bharat Dynamics and BEML climbed 39% and 9%, respectively. Shares of Cochin Shipyard and Bharat Electronics rose 18.57% and 43.89%, respectively.

The Ministry of Defence also unveiled the new Defence Procurement Manual (DPM), focusing on simplifying regulatory processes.

Some key provisions have been altered to expedite decision making and promote ease of doing business. Liquidated damages (LD) which is levied on delayed delivery of stores and services, has been relaxed and maximum LD to the extent of 10% will be levied only in cases of inordinate delay. This provision has further been relaxed in case of indigenisation where only 0.1% LD per week will be levied instead of 0.5% per week as applicable in other cases.

On October 24 at 11 am, Nifty India Defence index was trading 0.6% higher at 8,210, thus extending its gains to seventh day. The sectoral index rose 3% in the last seven sessions.