Defence stock engaged in the construction, repair, and refurbishment of warships, Submarines and many more in focus upon considering and approving a stock split of 1:2 and an interim dividend of Rs. 23.19 per equity share.
Price Action
With a market capitalization of Rs. 83,902 Crores, the shares of Mazagon Dock Shipbuilders Limited closed at Rs. 4,159.95 per equity share, down 11 percent from its previous day’s close price of Rs. 4,665.65.
What Happened
The Board of Directors of Mazagon Dock Shipbuilders Limited has considered and approved the sub-division/split of equity shares of the company in the ratio 1:2, where one equity share with a face value of Rs. 10 will be split into two equity shares with a face value of Rs. 5 as on the record date.
In Addition, it has also declared an interim dividend of Rs. 23.19 per equity share with a face value of Rs. 10 and has fixed 30th October 2024 as the record date to be eligible for it.
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. As of Q1FY25, it has a strong order book of Rs. 36,839 Crores.
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.
Financials and Ratios
Its revenue from operations grew by 8.48 percent from Rs. 2,173 Crores in Q1FY24 to Rs. 2,357 Crores in Q1FY25, accompanied by profits of Rs. 314 Crores to Rs. 696 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 44.2 percent. It has reported a debt-to-equity ratio of 1.31.
Written by: Bharath K.S
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