Synopsis:
LIC acquired a 3.27% stake in Mazagon Dock as the government diluted its holdings, while mutual funds and FPIs also increased their stakes.
This PSU Defence stock, engaged in designing, building, and repairing warships, submarines, offshore platforms, support vessels, and marine structures for defence and commercial sectors, is in focus after Life Insurance Corporation of India (LIC) acquired a fresh stake of 3.27 percent in the company.
With a market capitalization of Rs. 118,956.76 crores, the shares of Mazagon Dock Shipbuilders Limited were currently trading at Rs. 2,949 per equity share, down nearly 1.10 percent from its previous day’s close price of Rs. 2,981.85.
In the June 2025 quarter, Life Insurance Corporation of India (LIC) picked up a significant 3.27 percent stake in Mazagon Dock Shipbuilders, as per shareholding data on the Bombay Stock Exchange (BSE). LIC’s name was missing in the March quarter data, suggesting it either held no shares or less than 1 percent at the time. This fresh entry indicates strong interest from the insurance giant in the defence PSU.
The move came shortly after the government reduced its stake in the company through an Offer for Sale (OFS), lowering its shareholding from 84.8 percent to 81.2 percent. This OFS likely created the opportunity for LIC and others to increase their holdings.
Mutual funds also raised their stake in the company from 1.34 percent to 1.55 percent during the same quarter, while foreign portfolio investors (FPIs) increased their stake marginally from 2.26 percent to 2.49 percent.
Interestingly, retail shareholding dipped slightly from 11.21 percent to 10.99 percent, although the number of individual retail shareholders rose from 6.77 lakh to 7.20 lakh.
Mazagon Dock Shipbuilders Limited (MDL) is one of India’s premier public sector shipyards, headquartered in Mazagaon, Mumbai. The company specializes in building warships and submarines for the Indian Navy, in addition to offshore platforms and support vessels for the oil and gas sector.
Mazagon Dock Shipbuilders Limited (MDL) is mainly involved in building advanced warships such as destroyers, stealth frigates, corvettes, missile boats, and both conventional and stealth submarines. The company also handles repairs and refits of these vessels.
In addition to defence projects, MDL also builds cargo ships, passenger ferries, tugs, dredgers, and offshore oil platforms. So far, the company has built over 805 vessels, including 30 warships and 8 submarines for both Indian and international clients.
Order Book: As of March 31, 2025, Mazagon Dock Shipbuilders Limited (MDL) has an order book worth Rs. 32,260 crore, primarily centered on naval defence and heavy engineering projects. Major contracts include P15B Destroyers (Rs. 3,716 Cr) with all 4 units delivered, P17A Stealth Frigates (Rs. 13,493 Cr) with 3 units pending, and P75 Kalvari Submarines (Rs. 2,493 Cr) with all 6 units delivered.
Other key projects include 21 Indian Coast Guard vessels worth Rs. 2,849 crore and 6 Multipurpose Hybrid Powered Vessels worth Rs. 690 crore. MDL also has contracts with ONGC worth Rs. 5,409 crore and handles submarine refit work such as Medium Refit and Life Certification (Rs. 1,711 Cr).
Coming into financial highlights, Mazagon Dock Shipbuilders Limited’s revenue has increased from Rs. 3,104 crore in Q4 FY24 to Rs. 3,174 crore in Q4 FY25, which has grown by 2.26 percent. The net profit has decreased by 50.98 percent from Rs. 663 crore in Q4 FY24 to Rs. 325 crore in Q4 FY25. Mazagon Dock Shipbuilders Limited’s revenue and net profit have grown at a CAGR of 18.44 percent and 38.66 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 43.2 percent and 34 percent, respectively. Mazagon Dock Shipbuilders Limited has an earnings per share (EPS) of Rs. 59.8, and it’s an almost debt-free company.
Written By – Nikhil Naik
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
