Mumbai | 02-Oct-2025, 09:35 IST — Filed via NSE/BSE price data & company filings
Dek: India’s naval/defence order books and execution tailwinds minted multibaggers as these 4 names compounded 10x+.
India’s shipbuilding and defence equipment makers have delivered staggering shareholder returns over the past three years, as government focus on self-reliance in defence and a packed pipeline of naval orders triggered sustained re-ratings. Four stocks—Mazagon Dock Shipbuilders (MDL), Cochin Shipyard (CSL), Rail Vikas Nigam (RVNL), and Zen Technologies (Zen Tech)—have compounded between 10x and 23x since late 2021.
Multibagger Gains on Defence Tailwinds
- Mazagon Dock surged from ~₹260 in Oct 2021 to above ₹6,000 in Sep 2025, a 23x rise, supported by its ₹2.3 lakh crore order book spanning Scorpene submarines, destroyers, and frigates.
- Cochin Shipyard climbed nearly 15x, aided by a series of PSU and Navy contracts, including indigenous aircraft carrier projects and fleet support vessels.
- RVNL, once viewed as a steady railway EPC player, delivered over 12x returns as its diversification into metro and defence-linked infra boosted execution visibility.
- Zen Technologies, specialising in simulators and drone warfare systems, rose 10x+, riding both defence budget allocations and global export orders.
| Company | Price (Oct 2021) |
Price (Sep 2025) |
3Y Returns | Key Driver |
|---|---|---|---|---|
| Mazagon Dock | ₹260 | ₹2,700+ | ~10x | Submarine & warship pipeline |
| Cochin Shipyard | ₹120 | ₹1,800 | ~15x | Aircraft carriers, fleet vessels |
| RVNL | ₹25 | ₹300 | ~12x | Railway + metro defence infra |
| Zen Tech | ₹120 | ₹1,250 | ~10x | Simulators, drones, exports |
What’s Driving the Boom
- Order Books: India’s naval orders now stretch over a decade, offering revenue visibility rarely seen in PSUs.
- Policy Push: The Atmanirbhar Bharat agenda sharply reduced defence imports, funnelling contracts to domestic players.
- Execution: Faster milestone-based payments, infra expansion, and focus on exports helped de-risk cash flows.
- Investor Read-Through: Success in defence shipyards has led investors to hunt for the next mid-cap opportunity in the ecosystem.
Market Reaction
Analysts note that valuations in these counters are at historic highs. Mazagon Dock trades at over 60x trailing earnings, while Cochin Shipyard is at ~45x. Yet, inflows from mutual funds and retail investors have not slowed, signalling confidence in long-cycle order execution.
Risks Ahead
- Execution Delays: Any slippage in shipbuilding milestones or cost overruns could dent margins.
- Policy/Geopolitical Risk: Budget reallocations or easing of import restrictions might alter demand.
- Valuation Stretch: Current multiples imply sustained order inflows and flawless execution.
Outlook
Defence PSUs and allied mid-caps remain core beneficiaries of India’s push for indigenous naval strength. While returns of 10x–23x over three years are unlikely to repeat, most brokerages believe the sector has transitioned from cyclical to structural growth. Investors may now see steadier compounding rather than explosive reratings.
| Stock | Price (₹) | Change | Prev. Close | Day Range |
|---|---|---|---|---|
| Mazagon Dock | 2,848.00 | +86.50 (3.13%) | 2,761.50 | 2,758.10 – 2,874.70 |
| Cochin Shipyard | 1,863.00 | +73.40 (4.10%) | 1,789.60 | 1,774.20 – 1,929.90 |
| RVNL | 345.70 | +6.25 (1.84%) | 339.45 | 338.55 – 345.75 |
| Zen Tech | 1,475.00 | +42.20 (2.95%) | 1,432.80 | 1,430.70 – 1,488.90 |
