Rs 38,561 crore order book: Debt-free multibagger shipbuilding stock hit fresh 52-week high with large volume; Received ‘Navratna’ status from Ministry of Finance

The stock gave multibagger returns of 265 per cent in just 1 year and a whopping 1,800 per cent in 3 years.

Today, shares of Mazagon Dock Shipbuilders Limited (MDL) gained 9.30 per cent and to an intraday high of Rs 4,729.20 per share from its previous closing of Rs 4,326.60. The stock also made a fresh new 52-week high of Rs 4,729.60 while its 52-week low is Rs 1,262.65. At the closing bell, shares of the company were trading at Rs 4,686.25 per share, up 8.31 per cent with a spurt in volume by more than 2.5 times on BSE.  

Mazagon Dock Shipbuilders Limited (MDL), Mumbai, established in 1774, is a prominent shipyard in India. Initially a small dry dock, MDL has evolved into a renowned shipbuilding company. It has constructed 801 vessels since 1960, including warships, submarines, cargo/passenger ships, and offshore platforms.

Recently, Mazagon Dock Shipbuilders Limited (MDL) received ‘Navratna’ Status. Ministry of Finance, Government of India has elevated Mazagon Dock Shipbuilders Limited (MDL), India’s premier Warship and Submarine builders to the NAVRATNA category on June 25, 2024. MDL is now the 21st Navratna CPSE in the country, 3^rd in Defence PSUs and the first Shipyard to achieve this status. For the FY 2023-24, the company has posted a consolidated Annual turnover of Rs 9,467 crore and Net profit of Rs 1,845 crore.  

MDL had earned the status of Miniratna - in 2006 and the company also holds 47.21 per cent of the Equity Share capital of Goa Shipyard Limited, a PSU under the Ministry of Defence. Now, being elevated to Navratna status, signifies MDL’s consistent performance in the recent past and further MDL is committed to playing a more significant role in the country's Defence landscape and contributing significantly to the growth and development of the sector, in the years to come.

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Mazagon Dock's stock price has surged recently due to speculation of a massive order from the Ministry of Defence. While the company did submit a bid for a potential Rs 35,000 crore submarine project (Project P-75), ithttps://www.dsij.in/dsijarticledetail/articleid/39485/artmid/10163/preview/true clarified its standard practice and securing the contract isn't guaranteed, hence no immediate market disclosure was required. Earlier, Mazagon Dock celebrated its 250th anniversary, marking a significant transformation from a dry dock to a leading Indian shipbuilding giant. The government-owned company commemorated the occasion with a new land acquisition, launching an Indigenous mini-submarine, eco-friendly boat commissions, and a commemorative coin. The Defence Secretary even acknowledged Mazagon Dock's 250 years of excellence in shipbuilding for both the Indian Navy and commercial ventures.

According to its Quarterly Results, the net sales increased by 51 per cent to Rs 3,452.37 crore and net profit increased by 103 per cent to Rs 662.97 crore in Q4FY24 compared to Q4FY23. 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 March 31, 2024, the company is debt-free.

As of March 31, 2024, the company’s order book stands at Rs 38,561 crore and as of March 2024, DIIs have increased their stakes to 0.66 per cent from 0.43 per cent in December 2023. The company has a market cap of over Rs 89,000 crore. The stock gave multibagger returns of 265 per cent in just 1 year and a whopping 1,800 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.