Rs 41,500 crore order book: This shipbuilding company set to secure Rafale fighters and submarine orders; stock hits upper circuit & 52-week high!

The stock gave multibagger returns of 500 per cent in just 1 year whereas BSE Sensex Index is up by 24 per cent.

On Tuesday, one of the Top Gainers on BSE, shares of Mazagon Dock Shipbuilders Ltd surged 10 per cent upper circuit to Rs 1,588.75 from its previous closing of Rs 1,444.35. The stock also traded at a new 52-week high of Rs 1,588.75 per share with a spurt in volume by more than 1.51 times on BSE.

The sudden rise in the stock price is due to the company set to secure 26 Rafale fighters and 3 Scorpene submarine orders for the Indian Navy. Previously, the company signed a contract with the Indian Navy for Medium Refit cum Life Certification (MRLC) of the second Shishumar class submarine INS SHANKUSH. The value of the order is Rs 2724.63 crore.

Defence Update: During his two-day visit to France, Prime Minister Narendra Modi is expected to further strengthen the Indian Navy's capabilities by signing significant deals. These agreements include the acquisition of 26 Rafale-Marine fighters for the INS Vikrant aircraft carrier and a repeat order for constructing three more Scorpene (Kalveri) class submarines at Mazagon Dockyards Limited (MDL) through the "Make in India" initiative. The govt's decision to purchase these advanced assets, which has received clearance from the defence procurement board (DPP), will provide a massive boost to Indian defence forces.

According to the Quarterly Results, the net sales increased by 48.85 per cent to Rs 2,079 crore and net profit skyrocketed by 104.80 per cent to Rs 318 crore in Q4FY23 compared to Q4FY22. According to the annual results, the net sales increased by 36.52 per cent to Rs 7,827 crore and net profit increased by 85.77 per cent to Rs 1,073 crore in FY23 compared to FY22.

Mazagon Dock Shipbuilders Ltd is primarily engaged in building & repairing ships, submarines and various types of vessels and related engineering products for various domestic and international clients. It was incorporated as a private limited company in 1934 and was taken over by the Government of India in 1960. Including the above order, the company’s order book stands approx. at Rs 41,500 crore.

The stock gave multibagger returns of 500 per cent in just 1 year whereas BSE Sensex Index is up by 24 per cent. Investors must keep an eye on this stock.