This PSU stock has jumped from Rs 279 to Rs 726 in the last 3 months

The stock is up 14 per cent today

Shares of Mazagon Dock Shipbuilders Ltd have surged 14 per cent and closed at Rs 726. The stock opened at Rs 637.8 and so far, has made an intra-day high and low of Rs 749.05 and Rs 636.8, respectively.     

The stock is showing strong momentum upwards. In the last three months, the stock has jumped from Rs 279 on August 2, 2022 to Rs 683.05 on November 2, 2022, delivering a return of 168 per cent.   

Mazagon Dock Shipbuilders Ltd is a leading player in the shipbuilding industry of India. It is primarily engaged in building and repairing ships, submarines and various types of vessels and related engineering products for various domestic and international clients.    

It has also delivered cargo ships, passenger ships, supply vessels, water tankers, tugs, dredgers, fishing trawlers, barges and borders for various customers in India and abroad.   

Sales and net profit for FY22 on a consolidated basis were Rs 5,733 crore and Rs 586 crore, respectively. The company's ROE and ROCE as of the end of the FY22 period are 19.1 and 25.5 per cent, respectively. For the June quarter, on a consolidated basis, the company generated revenue of Rs 2,230 crore and a net profit of Rs 225 crore.     

About the shareholding pattern, 84.83 of the company’s stake is owned by the promoters, 3.05 per cent by FIIs, 0.76 per cent by DIIs and the rest 11.35 per cent by non-institutional investors.      

The company has a market capitalisation of Rs 13,810 crore and is currently trading at a PE multiple of 18.1x. The stock has a 52-week high and low of Rs 688 and Rs 224, respectively.