2 Stocks to Watch as Tamil Nadu Attracts Rs 300 bn in Shipbuilding

The shipbuilding industry in India is currently undergoing a significant transformational phase, supported by government initiatives and financial backing.

Recently, Tamil Nadu has secured an investment of Rs 300 billion (bn) for the shipbuilding sector.

This investment is dedicated to establishing two world-class greenfield commercial shipyards in the Tuticorin district.

Here are 2 stocks to watch.

#1 Cochin Shipyard

Cochin Shipyard will invest Rs 150 bn to set up a global-scale commercial shipyard at Tuticorin, which would generate over 10,000 jobs (4,000 direct and 6,000 indirect) in the first phase.

Cochin Shipyard is a top shipbuilding and ship repair company. It's capable of constructing vessels up to 110,000 DWT and repairing ships as large as 125,000 DWT, making it the leading facility for handling India's largest ships.

The company has delivered two of the nation's biggest double-hull Aframax tankers, each with a capacity of 95,000 DWT. Cochin Shipyard has secured prestigious shipbuilding contracts from globally recognised clients in Europe and the Middle East.

The company has strategic partnerships with Drydocks World (UAE) for developing ship repair clusters and HD KSOE (South Korea) for technical expertise and capacity enhancement.

On the financial front, Cochin Shipyard's Q1 FY26 results showed revenues of Rs 10,686 m, against Rs 7,715 m in the corresponding period of last year.

The company reported a net profit of Rs 1,878 m in Q1 FY26 compared to a net profit of Rs 1,742 m in the same quarter last year.

Moving ahead, the company currently has an order book of Rs 211 bn, which gives revenues visibility for the next few years.

With a strong order book and pipeline, Cochin Shipyard is well-positioned for sustained revenue growth and expanding its market leadership in shipbuilding and repairs.

How Shares of Cochin Shipyard Have Performed

In the past five days, Cochin Shipyard's shares have moved higher to Rs 1,930 from Rs 1,807. In the last one month, the share price has gained 13%.

In the last one year, the shares have moved 8% higher.

The stock touched its 52-week high of Rs 2,547.25 on 6 June 2025 and its 52-week low of Rs 1,180.45 on 18 February 2025.

To know more check Cochin Shipyard fact sheet and latest quarterly results.

#2 Mazagon Dock

Mazagon Dock like Cochin Shipyard will invest Rs 150 bn for a shipyard in Tamil Nadu. Mazagon Dock is a premier shipbuilding yard under the Ministry of Defence.

The company has grown from a small ship repair company into a multi-unit, multi-product company renowned for building technologically complex and advanced warships and submarines for the Indian Navy, as well as offshore platforms for oil drilling.

The company has built capital warships and submarines, ranging from destroyers, frigates, corvettes, missile boats, patrol vessels to cargo ships, passenger ships, and supply vessels.

On the financial front, Mazagon Dock's Q1 FY26 results showed revenues of Rs 26,256 m against Rs 23,570 m in the corresponding period of last year.

The company reported a drop in net profit to Rs 4,193 m in Q1 FY26 from Rs 6,659 m in the same quarter last year.

Moving ahead, Mazagon Dock has a healthy order book valued at about Rs 322.6 bn. The company is aggressively expanding its capacities. It's undertaking capital expenditure programs that are projected to at least double its current shipbuilding capacity.

These initiatives are supported by a healthy balance sheet with no immediate plans for debt funding for the expansion.

How Shares of Mazagon Dock Have Performed

In the past five days, Mazagon Dock's shares have moved slightly higher to Rs 3,002 from Rs 2,924. In the last one month, the share price has gained 11%. In the last one year, the shares have gained 39%.

The stock touched its 52-week high of Rs 3,778 on 29 May 2025 and its 52-week low of Rs 1,917.95 on 19 February 2025.

To know more check Mazagon Dock fact sheet and latest quarterly results.

Conclusion

The two ultra-mega projects together represent a Rs 300 bn investment expected to create 55,000 jobs, underscoring Tamil Nadu's emergence as a significant player in the global shipbuilding and maritime innovation space.

Both Cochin Shipyard and Mazagon Dock are companies to watch due to their critical roles in this development and the expected positive impact on their business growth.

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Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

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