Defence Stocks Soar: Phillip Capital Bets Big on Shipbuilding Giants, Up to 44% Return Potential

• Phillip Capital initiated "Buy" ratings on Mazagon Dock, Cochin Shipyard, and Garden Reach Shipbuilders, citing a "multi-decade transformation" in India's defence shipbuilding sector.
• The brokerage projects potential upsides of 36% for Mazagon Dock, 26% for Garden Reach, and 44% for Cochin Shipyard.
• These shares are currently trading 37-40% below their record highs, presenting attractive valuation opportunities.
• India's goal to be a top 5 shipbuilder by 2047, a ₹70,000 crore maritime stimulus, and a ₹2.3 lakh crore naval modernization pipeline fuel growth.
• Key risks include delays in order finalization, CAPEX slowdown, long project gestation periods, and supply chain limitations.

Why It Matters: Phillip Capital is bullish on India's defence shipbuilding stocks, projecting up to 44% returns amid sector transformation.