Cochin shipyard ltd: Shares of Cochin Shipyard LTD have performed tremendously this week. On Wednesday, the stock witnessed a rise of up to 12%, which was the third consecutive day gain. From Monday to Thursday, a total jump of 23% was recorded in this stock.

Even in today’s business, this stock is trading at the level of ₹ 96.10 (4.09%) to ₹ 2,446.90.

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Know the reason for the bounce in the stock?

The main reason for this boom became the statement of NATO General Secretary Mark Rute, in which he asked the member countries to increase the defense spending of GDP by 3.5%. After this global appeal, the expectations and confidence of investors in the defense sector have increased – which has a direct impact on Indian defense companies.

Cochin Shipyard proved to be like gold for investors:

• Tremendous return of 1,649% in 5 years
• 737% increase in 2 years
• Revenue of ₹ 1,807 crore in the quarter of March 2025Which is 38.5% more year after year.
• Net profit reached ₹ 285 crore.

Technical signs: Trade above all moving averages

The stock of Cochin Shipyard is currently trading its 5, 10, 20, 30, 50, 100, 150 and 200-days SMA, which reflects a strong uptrend according to technical analysis.

According to trendline reportCochin Shipyard’s EPS is expected to increase 4.4% by FY26.

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Indirect profit to India: New energy in defense sector

Although India is not a member of NATO, it has a strong defense partnership with NATO countries like America, France and Britain. Indian defense companies are getting indirect benefits of this.

Major Defense Stocks showing fast on Wednesday:

• Data patterns
• Hindustan Aeronautics Ltd (HAL)
• Mishra dhatu nigam (midhani)

All of them recorded a rise of 3% to 6%.

NATO budget hike: What is the strategy?

Dutch Defense Minister Ruben Breaklmans said that if the Netherlands spends 3.5% defense, it will have to spend $ 18 to 22 billion more than the current budget.

May be involved in proposed expenses:

• Advance Air Defense Systems
• Long range missile programs
• Drone technology (domestic and international)

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