The shares of the leading defence company gained 3 percent after the company received a significant contract from Oil and Natural Gas Corporation Ltd worth Rs 4,676 crore.
Mazagon Dock Shipbuilders Ltd has a market capitalization of Rs 1.01 lakh crore, the shares were trading at Rs 4,990.00 per share, increasing around 2 percent as compared to the previous closing price of Rs 4,917.25 apiece.
Reason for Rise:-
According to the company filing, Mazagon Dock Shipbuilders Ltd received a significant contract from Oil and Natural Gas Corporation Limited (ONGC) for Wellhead Platforms and Associated Pipeline Project (DSF-II) on an EPC reimbursable basis (OBE) at the ceiling price of Rs 4,676.32 crore.
Also read
Financial Performance:-
Looking forward to the company’s financial performance, revenue magnified a significant 49 percent from Rs 2,079 crore in Q4FY23 to Rs 3,104 crore in Q4FY24, during the same time frame net profit zoomed 103 percent from Rs 326 crore to Rs 663 crore.
Order Book & future Plans:-
The company has a strong order book of Rs 38,561 crore as of March 2024 and the company’s management expects to achieve an order book of Rs 40,000-50,000 crore by FY25.
Mazagon Dock Shipbuilders Ltd (MDL) is set for a pivotal year in FY25, with plans to deliver major orders, including P75 submarines, P15B missile destroyers, and P17A stealth frigates. the company aims to build 24 ships, leveraging its capacity to construct 21 vessels simultaneously.
Financially, MDL projects a growth rate of around 10% for FY25, exceeding industry averages. The Indian government’s planned stake sale could impact MDL’s financial structure. However, MDL’s management remains confident, citing flexible funding to support its ambitious production and delivery goals.
Company snapshot:-
Mazagon Dock Shipbuilders Limited builds and repairs ships, submarines, vessels, and technical items. The company builds warships and submarines. It also produces defense equipment.
Written by:- Abhishek Singh
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.
