The defence sector witnessed a remarkable rally on Friday, as shares of leading companies surged ahead of the Union Budget scheduled for February 1. Investors appeared optimistic about potential capital allocations, sending the Nifty India Defence Index to its strongest weekly gain in over eight months.
Market Performance
- Nifty India Defence Index jumped over 1.5% to an intraday high of 8,193.50.
- The index gained 8.9% over the week, marking its largest weekly rise since May 2025.
- In comparison, the benchmark Nifty 50 recorded a modest decline of 3.3% so far in January.
- Despite a slight dip of 1.2% in the previous session, the index bounced back strongly, with all 18 constituent stocks trading in the green.
This strong momentum highlights renewed investor interest in defence stocks, with key players leading the charge.
Key Movers
- Dynamatic Technologies topped the gainers list, surging 8% to Rs 8,790 per share.
- Garden Reach Shipbuilders & Engineers (GRSE) followed with a 7.37% rise.
- MTAR Technologies climbed 7.19%, reflecting robust quarterly performance.
- Shares of Paras Defence and Space Technologies, Cochin Shipyard, Mazagon Dock Shipbuilders, Bharat Electronics, and Hindustan Aeronautics also gained, rising up to 3%.
Company Highlights: MTAR Technologies
MTAR Technologies reported strong growth in the December quarter, showing significant gains across revenue and profits:
- Revenue: Rs 273.7 crore, up 56.9% YoY from Rs 174.3 crore.
- Net Profit: Rs 34.6 crore, more than double the Rs 15.9 crore reported last year.
- EBITDA: Rs 59.8 crore, up 80.7% YoY.
- Operating Margin: Improved to 22% from 19% in the same quarter last year.
This performance reflects healthy execution and operational leverage across MTAR’s business segments.
Summary
The defence sector is showing strong resilience, with the Nifty India Defence Index recording its biggest weekly gain since May 2025. Key players such as Dynamatic Technologies, GRSE, MTAR Technologies, Mazagon Dock, and Paras Defence led the rally.
MTAR Technologies stood out with stellar quarterly numbers, including a 56.9% revenue growth and an 80.7% jump in EBITDA, signaling robust business execution. Other defence companies like Cochin Shipyard, Bharat Electronics, and Hindustan Aeronautics also posted solid gains, reflecting broad-based optimism in the sector.
As the Union Budget approaches, the defence space remains in focus, with investors closely tracking the performance of leading manufacturers and shipbuilders.
Source: Moneycontrol
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