1:2 Stock Split & Rs 39,872 Crore Order Book: Debt-Free Defence Shipbuilding Company Bags New Order Worth Rs 1,990 Crore from Ministry of Defence
The stock gave multibagger returns of 157 per cent from its 52-week low of Rs 898.55 per share and a whopping 1,550 per cent in 3 years.
Mazagon Dock Shipbuilders Limited (MDL) has secured a substantial Rs 1,990 crore contract from the Indian Defence Ministry for the construction and integration of an Air Independent Propulsion (AIP) plug. This crucial technology, developed by the Defence Research and Development Organisation (DRDO) with industry partners, will significantly enhance the underwater endurance of India's Scorpene-class submarines. The AIP system allows submarines to operate submerged for extended periods without the need to surface for oxygen, acting as a force multiplier in underwater operations. This project aligns with the government's 'Aatmanirbhar Bharat' initiative, fostering self-reliance in defence technology and generating a substantial amount of employment.
The AIP plug contract with MDL marks a significant step towards enhancing the capabilities of the Indian Navy. By enabling longer submerged endurance, the AIP technology will provide Indian submarines with a critical tactical advantage. The Navy aims to integrate the AIP system during the first refit of the lead Scorpene submarine, scheduled for 2025. This project is expected to generate employment for nearly three lakh man-days, contributing to economic growth while strengthening India's naval prowess.
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.
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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 91,000 crore. The stock gave multibagger returns of 157 per cent from its 52-week low of Rs 898.55 per share and a whopping 1,550 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.