The shares of the leading defence company jumped 1 percent after the company received a purchase order from Maharashtra State Power Generation Company Ltd, which is valued at Rs 121.67 crore.
With a market capitalization of Rs 89,308.33 crore, the shares of Mazagon Dock Shipbuilders Ltd were trading at Rs 4,431.75 per share, increasing around 0.01 percent as compared to the previous closing price of Rs 4,431.10 apiece.
Reason for Rise:-
According to the company filing, Mazagon Dock Shipbuilders Ltd received a purchase order from Maharashtra State Power Generation Company Ltd for supply installation and commissioning of Al-based comprehensive infrasecure items, this order is valued at Rs 121.67 crore.
Financial Condition:-
Examining the company’s financial performance, revenue magnified by 8 percent from Rs 2,173 crore in Q1FY24 to Rs 2,357 crore in Q1FY25, but during the same time frame, net profit zoomed significantly by 121 percent from Rs 314 crore to Rs 696 crore.
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Project Update:-
The company has submitted prices for P75 additional Scorpene submarines, with two assessment rounds completed and nearing finalization. For P75I, successful field evaluation trials were reported in collaboration with TKMS, and the company is awaiting further technical discussions from the naval side.
Order Book & future outlook:-
The company’s current order book is around ₹40,400 crores, with revenue targets for FY25 projected to surpass last year’s performance. This robust pipeline highlights strong growth potential and reinforces confidence in meeting or exceeding financial goals for the upcoming fiscal year.
The management expects to maintain stable margins for ongoing projects unless unforeseen liabilities arise. The company is targeting three key deliveries this fiscal year: one destroyer, one frigate, and one submarine, emphasizing its commitment to meeting crucial milestones on time.
Capex plan:-
The company plans to invest ₹4,000 to ₹5,000 crores in capital expenditure over the next 4-5 years for infrastructure development, including land acquisition and facility upgrades. So far, ₹800 crores have been spent on long-term land leases, marking significant progress in these initiatives.
Remarkable Return:-
The stock has delivered returns of 98.85 percent in the last six months and a multi-bagger return of 103.53 percent in a year. A shareholder’s investment of Rs. 1 Lakh in the company would be worth Rs. 2.03 Lakh in a year.
Company Overview:-
Mazagon Dock Shipbuilders Limited is engaged in building and repairing of ships, submarines, various types of vessels, and related engineering products. The Company is into the construction of warships and submarines. It is also engaged in the production of defense equipment.
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Written by:- Abhishek Singh
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