Domestic benchmark equity indices, the Sensex, and the Nifty 50 ended Friday’s session in Red dragged by selling in Psu’s, Metal, and Energy. The Sensex ended at 80,604.65 down by 738.81 points or 0.91 percent, while the Nifty 50 closed at 24,530.90 down by 269.95 points or 1.09 percent.
Listed below is a Defence stock that has delivered multibagger returns of 2,950 percent to the shareholders of the company in 4 years since its listing
On October 16, 2020, the shares of Mazagon Dock Shipbuilders Limited closed at Rs. 168.05 exhibiting a gain of around 2,950 percent compared to the current price of Rs. 5,132.30. For example, if someone had invested Rs. 1 lakh into the company’s stock 4 years ago, it would have turned to ~Rs. 30.50 Lakhs.
About the Company
Mazagon Dock Shipbuilders Limited is a Navratna Public sector Undertaking which is one of India’s leading defence sector companies under the aegis of the Ministry of Defence, it is engaged in the construction, repair, and refurbishment of warships and submarines at its dedicated facilities in Mumbai and Nhava.
With a market capitalization of Rs. 1,03,513 Crores, the shares of Mazagon Dock Shipbuilders Limited closed at Rs. 5,132.30 per equity share, down 1.12 percent from its previous day’s close price of Rs. 5,190.20. It has delivered multibagger returns of 196 percent in a year.
Mazagon Dock Shipbuilders Limited is India’s only shipyard to have built Destroyers, and conventional submarines for the Indian Navy & manufacture corvettes in India. Since 1960 It has delivered more than 802 vessels of which 28 warships from advanced destroyers to missile boats and 7 submarines.
Portfolio
Its product portfolio consists of Destroyers, Missile Boats, Conventional Submarines Offshore Patrol Vessels, Cargo Vessels, Multipurpose Support Vessel, Tugs, Dredgers, Windmill towers Pontoons, Offshore Platforms, Floating Border Outposts, and many more.
Order Book
As of Q4FY24, Mazagon Dock Shipbuilders Limited has reported a strong order book of Rs. 38,561 Crores for designing, manufacturing, other works, and supplying Ships and Submarines.
Infrastructure
It has state-of-the-art World Class Infrastructure with the Capacity to build 11 Submarines & 10 warships concurrently.
Coming to its infrastructure facilities for ships it has 3 Dry Docks, 2 Wet Basins, 3 Slipways, 300 Tonne Goliath Crane, Production, Assembly & Electrical Shops, Machine and Fitting, Instrumentation Shop, and Shore Integration Facility.
Further for building submarines, it has set up Fabrication Shops, Sub-section Assembly & Section formation Shops, Cradle Assembly Shop for equipment outfitting, Shore Integration Facility, and Submarine Dry Dock.
Financials and Ratios
Its Revenue from operations grew by 49.32 percent from Rs. 2,078.59 Crores in Q4FY23 to Rs. 3,103.65 Crores in Q4FY24, accompanied by profits of Rs. 318 Crores to Rs. 654.33 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 35.2 percent, and a return on capital employed (ROCE) of 44.1 percent. It is a debt-free company with a debt-to-equity ratio of 0.
Written by: Bharath K.S
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