Navratna Defence stock is engaged in the construction and repair of various types of vessels, including warships, submarines, and offshore platforms, jumped 9.24 percent after receiving an order worth Rs. 36,000 crore from the Indian Navy
Stock Price Movement:
In Monday’s trading session, Mazagon Dock Shipbuilders Limited’s share reached an intraday high of Rs. 2438 per equity share, rising 9.24 percent from its previous day’s close price of Rs. 2231.85. The stock opened at Rs. 2251 and is currently trading at Rs. 2196.10.
The market capitalization now stands at approximately Rs. 88,586.28 crore. Over the last five years, the company has delivered a return of 2520.49 percent.
What Happened:
Mazagon Dock Shipbuilders Limited (MDL) has secured a significant order from the Indian Navy to build three additional Scorpene-class submarines, valued at over Rs 36,000 crore. The deal is expected to be signed by March 31, 2025, and will boost India’s naval strength.
However, the cost of each new submarine is about Rs. 12,000 crore, nearly three times higher than the earlier six submarines built under Project-75, costing about Rs. 3,500 crore each. This deal strengthens MDL’s position as a key player in India’s defense manufacturing sector and boosts its long-term growth.
The contract ensures steady revenue and enhances MDL’s expertise in submarine construction. With 60 percent indigenous content, the project aligns with the government’s “Make in India” initiative, improving MDL’s capabilities in advanced naval technology.
Additionally, The deal also provides job security and boosts local defense production capabilities. Earlier, MDL successfully built six Scorpene submarines under Project-75 for Rs 21,000 crore, proving its ability to execute large-scale defense projects.
Order book:
As of December 31, 2024, Mazagon Dock Shipbuilders Limited (MDL) has an order book worth Rs. 34,787 crore, mainly focused on naval defense projects. Key orders include P15B Destroyers (Rs. 28,641 Cr) with 4 units, P17A Stealth Frigates (Rs. 26,803 Cr) with 3 units and P75 Kalvari Submarines (Rs. 28,890 Cr) with 1 unit left for delivery.
The company’s other projects include 21 Indian Coast Guard ships (Rs. 2,849 Cr), 6 hybrid-powered European vessels (Rs. 715 Cr), and ONGC contracts (Rs. 6,525 Cr). The Ministry of Defense is MDL’s largest client, with a balanced mix of shipbuilding, submarine refits, and civilian maritime projects.
Business Operation:
Mazagon Dock Shipbuilders Limited (MDL) is India’s top shipyard and has delivered 805 vessels since 1960, including 30 warships and 8 submarines. On January 15, 2025, MDL achieved a major milestone with the tri-commissioning of INS Nilgiri, INS Surat, and INS Vagsheer.
The company leads the Nilgiri Class Stealth Frigates project and has successfully delivered all four destroyers. As India’s only shipyard building destroyers, submarines, and corvettes, MDL plays a key role in strengthening the nation’s naval defence.
Recent quarter results:
Mazagon Dock Shipbuilders Limited’s revenue has increased from Rs. 2,362 crore in Q3 FY24 to Rs. 3,144 crore in Q3 FY25, which has grown by 33.11 percent. The net profit of Mazagon Dock Shipbuilders Limited has also grown by 28.71 percent, from Rs. 627 crore in Q3 FY24 to Rs. 807 crore in Q3 FY25.
Written By – Nikhil Naik
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