Shares of this defence company, renowned for its expertise in constructing warships and submarines, surged 2 percent on Tuesday. The rise came after the company finalized the record date for its 1:2 stock split, signaling its commitment to enhancing liquidity and making its shares more accessible to a broader investor base.
Price Action
During Tuesday’s trading session, Mazagon Dock Shipbuilders Ltd’s share price reached an intra-day high of Rs.4,623.85 per share, rising nearly 2 percent from its previous close of Rs.4,544.65 apiece.
The shares have retreated since then and are currently trading at Rs.4,548.05 per share. Over the past five years, the stock has delivered returns of over 2,600 percent.
What happened
State-run Mazagon Dock Shipbuilders Ltd. has set December 27, 2024, as the record date for its upcoming stock split. This decision was finalized during the company’s board meeting on October 22.
Under the stock split plan, each existing share with a face value of Rs.10 will be divided into two shares with a face value of Rs.5 each. Shareholders holding Mazagon Dock shares in their demat accounts prior to December 27, 2024, will be entitled to benefit from the split.
Business Overview
The company’s order book stands at around Rs.39,870 crore, with several major projects slated for execution over the next 2–3 years. This includes potential additions such as next-generation corvettes, follow-on orders for three Scorpene submarines, and six P75-I submarines, which could further enhance the order book.
Furthermore, Mazagon Dock Shipbuilders (MDL) is managing key projects for the Indian Navy, including P15B and P17A class ships and Scorpene-class submarines. The company is incorporating artificial intelligence in shipbuilding with AI-enabled inspection tools and underwater robots.
MDL is also modernizing its facilities through the Mazdock Modernisation Project, adding infrastructure like a Wet Basin and Heavy Duty Goliath Crane to boost production.
Also read….
Brokerage View
Analysts continue to have a favorable view of Mazagon Dock Shipbuilders’ share price. Recently, Axis Securities selected the company’s shares as its Momentum Stock pick. They set a target price range of Rs.4,965 – Rs.5,085, suggesting an upside potential of 8-12 percent for the stock, which is currently trading around Rs.4,544.65 apiece.
Financial Performance
In its recent financial updates, Mazagon Dock Shipbuilders Ltd reported revenue of Rs.2,757 crore in Q2 FY25, increasing 50.8 percent from Rs.1,828 crore in Q2 FY24. The net profit also inclined to Rs.585 crore, rising 76 percent from Rs.333 crore in the same period.
Company Profile
Mazagon Dock Shipbuilders Limited (MDL) is a prominent shipyard based in Mumbai, India, known for its expertise in building warships and submarines for the Indian Navy. Since 1960, the company has constructed over 800 vessels, including sophisticated submarines as part of Project 75 India. Recently, MDL received approval to build six additional submarines in partnership with Germany’s ThyssenKrupp.
Written by – Siddesh S Raskar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
