This mid-cap stock jumps up to 17% after entering into an agreement with US government on Friday. The stocks currently trading 10% below the 52-week high. Because of the strong and rising volume, which is higher than usual when compared to the previous day and week, the stock price has held at a high level.
Mazagon Dock Shipbuilders Ltd
The company has a market capitalization of Rs. 44,449 Cr., making it a mid-cap. On Friday at 12:35 p.m., stocks are trading 8.2% up at Rs. 2,259.45 on NSE.
According to the company filing, MDL has signed the Master Ship Repair Agreement (MSRA) with the US government represented by NAVSUP Fleet Logistics Center (FLC) This is a Non-Financial Agreement. There are only two shipyards in the country including MDL that have signed MSRA. The deal is anticipated to open up voyage repairs of US Navy Ships at MDL.
The stock has delivered 208% returns in six months and 420% returns in one year, therefore making an investment of 1 lakh six months ago now would be worth 3.08 lakhs and making the same amount of investment one year ago now would be worth 5.2 lakhs.
The company’s total revenue increased by 16% YoY from Rs. 2,366.4 Cr in Q1 FY23 to Rs. 2,405.4 Cr in Q1 FY24 and for the same period, net profit grew by 32% YoY from Rs. 217 Cr to Rs. 286.6 Cr.
As per the latest shareholding information, Promoters hold 84.83%, DIIs hold 0.55%, FIIs hold 3.29% and the Public hold 11.33% stake in this company.
India’s premier shipyard is Mazagon Dock Limited (MDL). MDL produces offshore platforms and related support vessels for offshore oil drilling in addition to warships and submarines for the Indian Navy.
Written by Sheshadri N
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