Mazagon Dock vs Cochin Shipyard vs GRSE: Which Defence PSU Stock Is Better? Dividend, Mcap To Outlook Compared

Mazagon Dock vs Cochin Shipyard vs GRSE: India's naval industry is entering a high growth phase, which is backed by a strong order pipeline of nearly Rs 2.35 trillion through 2035. Defence Public Sector Undertakings (PSUs) like Mazagon Dock, Cochin Shipyard and Garden Reach Shipbuilders & Engineers Limited (GRSE) are positioned as the prime beneficiaries, according to experts.

Defence PSU theme has always enjoyed significant investor interest due to the government's focus on strengthening defence capabilities and infrastructure. The West Asia crisis, China's naval expansion, rising piracy and vessel harassment episodes have elevated maritime security from a defence function to a first-order economic safeguard. So let's understand which defence PSU stock is likely to benefit the most from India's naval expansion story.

Mazagon Dock vs Cochin Shipyard vs GRSE: Core Business, Order Book, Revenue Growth

Mazagon Dock Shipbuilders core business revolves around submarines, destroyers, frigates and warships. The Navratna defence PSU stock has delivered 31 warships, from advanced destroyers to missile boats and 8 submarines. Mazagon Dock had an order book of Rs 2,05,350 million in the financial year 2025-26, and its revenue grew by 20.9% between FY23 and 25, as per the Choice report.

Cochin Shipyard dominates the ship repair market. It has a history of offering products linked to tankers, product carriers, bulk carriers, passenger vessels, high bollard pull tugs and air defence ships. Cochin Shipyard has an order book of Rs 1,90,577 million in FY 26 and its revenue grew by 42.8% between FY23 and FY 25.

Garden Reach Shipbuilders & Engineering's business operations span frigates, corvettes, survey vessels and patrol vessels. GRSE's order book stood close to Rs 1,53,241 million in FY 26 and its revenue grew by 40.8% between FY23-25, as per the Choice Broking report released earlier in June.

Mazagon Dock vs Cochin Shipyard vs GRSE: Share Price Trend, MCap, RoE, Dividend

Mazagon Dock share price closed 0.82% lower at Rs 2473.05 per share on BSE with a market capitalisation of Rs 99,757.89 crore on BSE on Thursday, June 25. The stock had a return on equity (ROE) of 37.17% and surged 24.32% in two years.

Cochin Shipyard share price ended 1.92% lower at Rs 1458.2 per share on BSE with a market capitalisation of Rs 38,362.44 per share on Thursday. The stock had an RoE of 12.10% and has delivered 33% negative returns in two years.

GRSE share price ended 2% lower at Rs 2725.2 per share on BSE with an Mcap of Rs 31,217.71 crore on BSE. The stock has a return on equity (ROE) of 40.60% and it has delivered 39.97% return in two years, as per BSE data.

Cochin Shipyard has a dividend yield of 0.7%, whereas GRSE has a dividend yield of 0.5%, and Mazagon Dock has a dividend yield of 0.7%.

Mazagon Dock Share Price Target and Outlook

The defence PSU stock has a strong outlook due to its more than Rs 700 billion order pipeline and execution. The brokerage gave a price target of Rs 3,100 per share to the stock in long-term. "We assign a 'BUY' rating with a target price of INR 3,100, implying 28.7% upside. Our valuation is based on 35x PE on FY28E EPS of INR 88.2, implying a PEG ratio of 2.2. We have used DCF for sanity check, which implies fair value of INR 3,090," as per Choice Broking report released in June first week.

Cochin Shipyard Share Price Target

Cochin Shipyard's diversified business mix and a healthy order book of nearly Rs 190 billion offers strong revenue visibility. "We expect Revenue/EBITDA/PAT CAGR of 19.8%/24.7%/26.4%, respectively, over FY26-29E, driven by execution ramp-up, operating leverage and an improving mix. We assign an 'ADD' rating with a target price of INR 1,550 (8.4% upside), valuing the stock at 35x FY28E EPS of INR 44.2 (PEG 2.0); our DCF implies a fair value of INR 1,553," as per the brokerage report.

GRSE Share Price Target

GRSE enjoys a strong execution across complex naval platforms and a growing order pipeline. "We assign GRSE a 'BUY' rating with a target price of INR 3,500 (27.5% upside), valuing the stock at 35x FY28E EPS of INR 100.1 (PEG 1.9); our DCF implies a fair value of INR 3,450," noted the brokerage.

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