1:2 Stock Split & Rs 39,872 Crore Order Book: Debt-Free Defence Shipbuilding Company Delivered Sixth Scorpene Class Submarine Vaghsheer to Indian Navy
The stock gave multibagger returns of 151 per cent from its 52-week low of Rs 898.55 per share and a whopping 1,500 per cent in 3 years.
Mazagon Dock Shipbuilders Limited (MDL) successfully delivered the sixth Scorpene submarine, Vaghsheer, to the Indian Navy on January 9, 2025. This milestone signifies a significant achievement in India's 'Aatmanirbhar Bharat' and 'Make in India' initiatives, solidifying the nation's position as a prominent submarine-building nation. The delivery of Vaghsheer, following the successful delivery of five preceding submarines, reaffirms MDL's expertise and capabilities in meeting the evolving requirements of the Indian Navy.
Vaghsheer, launched in April 2022, has undergone rigorous trials to ensure its combat readiness. Equipped with state-of-the-art technology, including advanced acoustic absorption techniques and low radiated noise levels, the submarine boasts superior stealth features. It is designed to operate effectively in all theatres, capable of undertaking various missions such as anti-surface and anti-submarine warfare, intelligence gathering, and area surveillance.
The Scorpene submarine is equipped with a sophisticated Integrated Platform Management System (IPMS) and a Combat Management System (CMS), enhancing its operational capabilities. It incorporates several indigenous components, including the Air Conditioning Plant, Internal Communication & Broadcast System, Main Batteries, and Ku-Band SATCOM (Rukmini), showcasing advancements in domestic defence manufacturing.
The successful delivery of Vaghsheer is a testament to the collaborative efforts of MDL, the Department of Defence Production (DDP), the Ministry of Defence (MoD), and the Indian Navy. MDL, having undertaken significant infrastructure upgrades, is now capable of concurrently building 10 capital warships and 11 submarines, demonstrating its commitment to meeting the nation's growing maritime needs.
DSIJ's DSIJ's ‘Mid Bridge’ service recommends well researched Mid-Cap stocks for smart investing. If this interests you, do download the service details here.
About Mazagon Dock Shipbuilders Limited (MDL)
Mazagon Dock Shipbuilders Limited (MDL), a renowned Indian shipyard established in 1774, has a rich history of building a wide range of vessels, including warships, submarines, cargo/passenger ships, and offshore platforms. Having constructed over 800 vessels since 1960, MDL has consistently demonstrated its shipbuilding prowess. In recognition of its significant contributions to India's Defence industry, MDL was conferred the prestigious 'Navratna' status in June 2024, joining the ranks of India's top-performing public sector enterprises. This elevation is a testament to MDL's strong financial performance, consistent track record, and commitment to strengthening India's defence capabilities.
According to its Quarterly Results, the net sales increased by 51 per cent to Rs 2,756.8 crore and net profit increased by 82 per cent to Rs 552.8 crore in Q2FY25 compared to Q2FY24. Looking at its half-yearly results, the net sales increased by 28 per cent to Rs 5,113.9 crore and net profit increased by 106 per cent to Rs 1,218.7 crore in H1FY25 compared toH1FY24 In its annual results, the net sales increased by 24 per cent to Rs 10,568.05 crore and net profit increased by 73 per cent to Rs 1,936.97 crore in FY24 compared to FY23. As of September 30, 2024, the company is debt-free.
The Board announced a stock split in the ratio of 1:2 i.e., the existing 1 equity share of the face value of Rs 10 each fully paid up shall be sub-divided/ stock split into 2 equity shares of the face value of Rs 5 each fully paid up. The Board fixed the record date for the stock split as Friday, December 27, 2024.
As of September 30, 2024, the company’s order book stands at Rs 39,872 crore and as of September 2024, DIIs have increased their stakes to 1 per cent compared to 0.83 per cent in June 2024. The company has a market cap of over Rs 90,000 crore. The stock gave multibagger returns of 151 per cent from its 52-week low of Rs 898.55 per share and a whopping 1,500 per cent in 3 years. Investors should keep an eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.