Following the development, GRSE shares fell 7.63 per cent to Rs 1,868.15. Mazagon Dock shares slipped 6.69 per cent to Rs 1,863.75. Both the stocks later recovered and were down about 4 per cent each.
Earlier on October 7, DAM Capital in a note said shipyards may see peak revenue growth and margins in FY27, supported by execution of a significant portion of their high-margin defence order books. It said FY28 could see margin normalisation as execution shifts towards relatively lower-margin contracts.
It said delays in approvals and contracting of major defence shipbuilding programmes remain a near-term overhang, impacting order inflow visibility for MDL, GRSE, Cochin Shipyard and other players.
That said, "With the recent correction in shipyard stocks, valuations have become more reasonable, improving the risk-reward. We believe investors should start looking to accumulate quality names," it said.
Among GRSE's key order opportunities to watch are Coastal research vessel; NG Corvette (already declared as L-1 for five ships); NG survey vessels large; NG fast patrol vessels; NG ocean going patrol vessels; multi-purpose vessels; fast interceptor vessels; water jet FAC; P17B; and mine counter measure vessels, ICICI Securities said this month.
For MDL, eyes are on six submarines P 75 (I); extension of P75 order for three additional submarines; next-gen destroyers (four for MDSL); and eight next-gen frigates. Besides, there may be a steady inflow of MRLC orders, ICICI Securities said earlier this month.
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