Rs 38,389 crore order book: After IREDA, this Debt-free multibagger warship and submarine builders company receives ‘Navratna’ Status; Hit 52-week high!

The stock gave multibagger returns of 260 per cent in just 1 year and a whopping 1,650 per cent in 3 years.

Today, shares of Mazagon Dock Shipbuilders Limited (MDL) gained 12.35 per cent and to an intraday high of Rs 4,585 per share from its previous closing of Rs 4,081. The stock also made a fresh new 52-week high of Rs 4,585 while its 52-week low is Rs 1,230.25. At the closing bell, shares of the company were trading at Rs 4,415.20 per share, up 8.19 per cent with a spurt in volume by more than 3 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.

After, the Indian Renewable Energy Development Agency Ltd (IREDA), 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 21 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 MDL 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.

Also Read: Rs 9,300 crore order book: This civil construction company bags new orders worth Rs 131.19 crore from PowerGrid Energy Services Limited

The recent rise in Mazagon Dock's stock price is linked to the press release updated on the exchanges (BSE & NSE) that the company is likely to receive a Rs 35,000 crore order from the Ministry of Defence (MoD). However, the company clarifies that submitting a bid for three additional submarines under Project P-75 is a standard business practice. Mazagon Dock submitted a bid for the potential Rs 35,000 crore submarine project, but winning the contract isn't assured, so it doesn't require immediate market disclosure.

Earlier, Indian shipbuilding giant, Mazagon Dock Limited, celebrated its 250th anniversary, marking a transformation from a 1774 dry dock. Now government-owned, they commemorated with new land acquisition, an Indigenous mini-sub launch, eco-friendly boat commissions, and a commemorative coin. The Defence Secretary praised MDL's 250 years of shipbuilding excellence 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 260 per cent in just 1 year and a whopping 1,650 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.