Mazagon Dock Share:
Mazagon Dock Shipbuilders Limited (MDL), a premier defense public sector undertaking (PSU) in India, has emerged as a cornerstone of the nation’s shipbuilding and defense manufacturing capabilities. Specializing in the construction of warships and submarines, MDL has delivered exceptional returns to its investors, with its stock price surging over 28 times in the last five years. This remarkable performance has been driven by a combination of strong order inflows, the Indian government’s emphasis on self-reliance in defense manufacturing, and consistent revenue growth. As a result, MDL has become one of the best-performing PSU stocks in recent years, reflecting its strategic importance, rising profitability, and the increasing allocation of defense budgets.
Mazagon Dock Share Recent Market Performance
In its latest trading session, Mazagon Dock Shipbuilders Ltd. showcased strong bullish momentum, closing at ₹2,246.70, a gain of ₹84.20 (3.89%) from its previous close of ₹2,162.50. The stock reached an intraday high of ₹2,255.00 and a low of ₹2,151.05, demonstrating significant investor interest and confidence in the company’s growth trajectory.
About Mazagon Dock Shipbuilders Limited
Mazagon Dock Shipbuilders Limited, headquartered in Mumbai, Maharashtra, is India’s leading public sector shipbuilding company. Established in 1934 and nationalized in 1960, MDL operates under the Ministry of Defence and plays a pivotal role in bolstering India’s maritime defense capabilities. The company specializes in the construction of warships, submarines, offshore platforms, and commercial vessels, catering primarily to the Indian Navy and the Indian Coast Guard, with some international clients as well.
Mazagon Dock Shipbuilders Limited has firmly established itself as a key player in India’s defense and shipbuilding sectors. With a strong order book, strategic government support, and ongoing capacity expansion initiatives, MDL is well-positioned for sustained growth. Its impressive financial performance, coupled with its pivotal role in enhancing India’s maritime defense capabilities, makes it a compelling investment opportunity in the defense PSU space. As the company continues to secure large contracts and expand its capabilities, MDL is poised to remain a cornerstone of India’s defense manufacturing ecosystem.
Key Facts About MDL(Mazagon Dock Share)
Founded: 1934 (Nationalized in 1960)
Headquarters: Mumbai, India
Ownership: Government of India (Public Sector Undertaking)
Industry: Shipbuilding and Defense
Products: Warships, submarines, offshore platforms, and commercial vessels
Major Clients: Indian Navy, Indian Coast Guard, and select international clients
Notable Projects of MDL(Mazagon Dock Share)
Submarines: Scorpène-class (Kalvari-class) submarines under Project-75
Destroyers: Visakhapatnam-class (Project-15B)
Frigates: Nilgiri-class (Project-17A)
Other Vessels: Offshore patrol vessels and commercial ships
Mazagon Dock Share Financial Performance
MDL’s financial performance over the past few years has been robust, reflecting its operational efficiency and strong order book. The company’s financials reveal a consistent upward trend in sales, expanding profit margins, and robust profit growth, making it an attractive investment opportunity.
Financial Highlights (Sep 2023 – Dec 2024)
| Particulars | Dec 2024 | Sep 2024 | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 |
|---|---|---|---|---|---|---|
| Sales | ₹3,144 | ₹2,757 | ₹2,357 | ₹3,104 | ₹2,363 | ₹1,828 |
| Expense | ₹2,327 | ₹2,246 | ₹1,715 | ₹2,580 | ₹1,823 | ₹1,651 |
| Operating Profit | ₹817 | ₹511 | ₹642 | ₹524 | ₹539 | ₹177 |
| OPM % | ₹26 | ₹19 | ₹27 | ₹17 | ₹23 | ₹10 |
| Other Income | ₹286 | ₹254 | ₹271 | ₹349 | ₹269 | ₹252 |
| Interest | ₹1 | ₹1 | ₹1 | ₹1 | ₹1 | ₹1 |
| Depreciation | ₹40 | ₹23 | ₹23 | ₹23 | ₹20 | ₹20 |
| Profit Before Tax | ₹1,063 | ₹741 | ₹889 | ₹849 | ₹786 | ₹407 |
| Tax % | ₹24 | ₹21 | ₹22 | ₹22 | ₹20 | ₹18 |
| Net Profit | ₹807 | ₹585 | ₹696 | ₹663 | ₹627 | ₹333 |
| EPS | ₹20 | ₹29 | ₹35 | ₹33 | ₹31 | ₹17 |
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Mazagon Dock Share Investment Returns (as of March 4)
Short-Term Returns:
– 1 Week: 6.89%
– 1 Month: 1.96%
– 3 Months: -7.57%
– 6 Months: -1.87%
– 9 Months: 60.58%
Long-Term Returns:
– 1 Year: 115.10%
– 2 Years: 513.27%
– 3 Years: 1769.45%
– 4 Years: 1925.88%
– 5 Years: 2513.05%
Historical Performance (as of March 4)
1 Year: High of ₹2,930.00, Low of ₹897.70
3 Years: High of ₹2,930.00, Low of ₹114.73
5 Years: High of ₹2,930.00, Low of ₹82.00
Mazagon Dock Share Potential Peers Comparison
MDL’s performance stands out when compared to its peers in the shipbuilding and defense sector. Key metrics such as market capitalization, P/E ratio, return on equity (ROE), and debt-to-equity ratio highlight MDL’s strong position in the industry.(As of March 4)
| Name | M. Cap (Cr.) | P/E Ratio | ROE | Debt to Equity |
|---|---|---|---|---|
| Cochin Shipyard | 33,303.40 | 41.60 | 16.18 | 0.12 |
| Laxmipati Engineering | 138.10 | 180.60 | 37.39 | 23.09 |
| Hariyana Ship Breakers | 63.21 | 51.80 | 2.22 | 0.13 |
Mazagon Dock Share Shareholding Pattern
MDL’s shareholding pattern reflects the dominant role of the Government of India as the primary promoter, with public investors holding a significant portion of the shares.
| Category | Shareholding (%) |
|---|---|
| Promoters(Government Of India) | 84.83% |
| Domestic Institutional Investors | 1.47% |
| Foreign Institutional Investors | 1.55% |
| Others | 1.67% |
| Public Investors | 10.48% |
Recent Developments in Mazagon Dock Share
1. Navratna Status: In 2024, MDL was granted ‘Navratna’ status by the Department of Public Enterprises, granting it greater financial autonomy. This allows MDL to make investments of up to ₹1,000 crore without central government approval, enabling faster decision-making and execution of projects.
2. Stock Split and Dividend: MDL announced a 1:2 stock split, reducing the face value of each share from ₹10 to ₹5, subject to shareholder approval. Additionally, the company declared an interim dividend of ₹23.19 per equity share for the financial year 2024-25, with a record date of October 30, 2024.
Mazagon Dock Share Order Book and Future Growth Prospects
MDL boasts a strong order book of approximately ₹34,800 crore, reflecting its robust pipeline of projects. The company is confident about securing additional orders for three Scorpene submarines, further bolstering its order backlog, which currently stands at ₹34,787 crore (3.06x trailing twelve-month revenues).
Mazagon Dock Share Key Growth Drivers
P75(I) Submarine Project: MDL is collaborating with ThyssenKrupp Marine Systems for this project, which is expected to significantly enhance India’s submarine capabilities.
Additional Submarines: The company is poised to secure contracts for three additional Kalvari-class submarines and six P-75 India submarines.
Next-Generation Destroyers: MDL is also expected to play a key role in the construction of next-generation destroyers for the Indian Navy.
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Capacity Expansion Initiatives
MDL is investing approximately ₹50 billion to expand its shipbuilding and repair capabilities. This includes acquiring 15 acres adjacent to its existing shipyard for a new facility and developing a larger shipyard with a significantly bigger dry dock. These expansions aim to nearly double MDL’s capacity, enabling the construction of larger warships and submarines while strengthening its ship repair and maintenance business.
Mazagon Dock Share Analyst Projections
Analysts project MDL’s revenues to reach ₹168.1 billion by 2026, reflecting a 48% increase over the past 12 months. Earnings per share are expected to rise by 21% to ₹82.77, surpassing the company’s historical growth rate of 21% per annum over the past five years.
Mazagon Dock Share Strategic Contracts and Orders
MDL is set to benefit from significant defense deals, including the procurement of three additional Scorpene-class submarines valued at nearly ₹400 billion. The company has also secured a ₹1.2 billion order from the Maharashtra State Power Generation Company (MAHAGENCO) for an AI-based security project, showcasing its diversification into advanced technological solutions.
Mazagon Dock Share IPO and Market Performance
MDL launched its IPO in September 2020, with the stock listing at ₹216 per share, marking a 49% gain on debut. Since then, the stock has seen multifold growth, driven by strong financial performance and increasing demand in the defense sector.
Brokerage Views on Mazagon Dock Share
JPMorgan has maintained a ‘neutral’ rating on MDL but raised its target price to ₹2,262 from ₹2,124 per share. The brokerage highlighted MDL’s better-than-expected third-quarter margins and anticipated large orders. However, it noted that the order book has stagnated, and future margins may be lower. Additionally, while revenue growth has been strong, it could temporarily slow if large awards are delayed.
Disclaimer:
This article is intended for informational purposes only and should not be taken as financial advice. Investors are encouraged to conduct their own research or consult a financial advisor before making investment decisions. Always verify current data and seek guidance from your financial advisor before investing in any company. The views and investment recommendations provided by experts, brokerage firms, or rating agencies on stoxmail.com are their own and do not reflect those of the website or its management. Investing in stocks carries inherent risks.