This Defence PSU company, which is into shipbuilding, was a small dry dock initially. With the Atmanirbhar Bharat initiatives and other policies, Mazagon Dock holds opportunities for long-term investors.
In this article, we will look into the Mazagon Dock Shipbuilders, their financials, future plans, and others. However, investors should do their research before investing.
Price Movement
Mazagon Dock Shipbuilders Limited‘s stock in Friday’s session closed at Rs. 2,336.95 per share up by 4.20 percent from the previous closing price of Rs. 2,242.75. The stock has delivered a return of around 125 percent in the past year and has outperformed the Nifty Index in the same period.
From its 52-week high price of Rs. 2,929.98 per share, the share price has dropped around 20.24 percent near to its current market price.
Business Segments
As per the recent December 2024 results, the company has been exempted from its disclosure as it is engaged in Defence Equipment manufacturing.
Future Plans
Mazagon Dock Shipbuilders Limited plans to invest Rs. 5,000 crore over the next 4-5 years to expand its infrastructure, which includes developing a graving dry dock and upgrading its Nhava Yard. In FY26, the company will allocate Rs. 500 crore for capital expenditure, with Rs. 350 crore focused on completing a floating dry dock.
It expects to secure additional orders for three P-75 submarines before March 31, 2025, and anticipates a P-75(I) order in the next financial year. The company aims to maintain PBT margin of 12-15 percent for FY26.
The company has already secured a Rs. 1,768 crore contract for AIP upgrades on Scorpene submarines and expects further orders for mid-life refits. Future revenue streams include potential contracts for Next Generation Corvettes, additional submarines, and export opportunities, with discussions ongoing with international clients such as Malaysia.
Order Book
The company’s order book as of 31st December 2024 stood at Rs. 34,787 crore, which includes Shipbuilding and Submarine and Heavy Engineering.
Financial Performance
Their Q3FY25 results show revenue from operations of Rs. 3,144 crore which increased by 33.10 percent year on year, from Rs. 2,362 crore in Q3FY24 and a 14.03 percent increase from Rs. 2,757 crore in Q2FY25.
Its net profit increased by 28.70 percent year-on-year, from Rs. 627 crores in Q3FY24 to Rs. 807 crores in Q3FY25. Quarterly, the profits improved from Rs. 585 crore.
The Operating Margin for Q3FY25 stood at 22 percent, a decline from 25 percent on a year-on-year basis.
About the company
Mazagon Dock Shipbuilders Ltd is a leading Indian Defence PSU shipyard under the Ministry of Defence, specializing in building and repairing ships, submarines, and offshore structures. It has constructed over 800 vessels, including warships and submarines for the Indian Navy.
Written by Santhosh S
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