Multibagger Navratna PSU Shipbuilder Begins Production of USD 86 Million Multipurpose Cargo Vessels for Denmark's Navi Merchants
The company’s shares have delivered an impressive multibagger return of over 850 per cent in just 2 years.
Mazagon Dock Shipbuilders Ltd (MDL), a Navratna DPSU, has officially commenced production of the first Multipurpose Cargo Vessel (MPV) for Navi Merchants, Denmark. The plate cutting ceremony, marking the start of the production, was graced by Mr. Simon Christensen, CEO of Navi Merchants, as the Chief Guest. Mr. Christensen and Mr. Sanjeev Singhal, Chairman and Managing Director of MDL, jointly initiated the cutting of the first steel plate in the presence of MDL’s Director (Shipbuilding), CVO, and other officials.
MDL has signed a contract with Navi Merchants, Denmark, to design, build, and deliver six vessels, with an option for four additional ones, each with a capacity of 7,500 DWT. The project is valued at approximately 86.05 million USD (around Rs 700 crores). The vessels will feature a hybrid propulsion drive and meet stringent emission standards, classified under DNV (Det Norske Veritas). They will be Ice Class 1B vessels, powered by a single screw, controllable pitch, medium-speed diesel engine, and will include Electrical Energy Storage systems in compliance with DNV Class notation Battery (Safety) for unrestricted global operations.
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These multipurpose vessels will be designed to transport a wide range of cargoes, including dry bulk, project cargo, containers, steel products, general cargo (packaged, palletized, and bagged goods), forest products, and dangerous goods. The first vessel is scheduled for delivery in April 2026, making today’s plate cutting ceremony a major milestone in the project’s timeline.
Today the shares of Mazagon Dock Shipbuilders Ltd closed at around Rs 4250.30 per share on the BSE. The company’s current market capitalization stands at Rs 85724.30 crore. Additionally, the shares have delivered an impressive multibagger return of over 120 per cent in the past 6 months.
As per the Quarterly Results, in the Q1 FY25, Mazagon Dock Shipbuilders Ltd recorded a revenue of Rs 2357 crore compared to Rs 2173 crore. The operating profit stood at Rs 642 crore with a margin of 27 per cent which was earlier 8 per cent same quarter last year. The net profit stood at Rs 696 crore compared to a profit of Rs 314 crore.
According to the shareholding pattern of the company, the promoters hold a significant 84.83 per cent stake. Public investors own 11.89 per cent of the shares, while Foreign Institutional Investors (FIIs) hold 2.44 per cent and Domestic Institutional Investors (DIIs) own 0.83 per cent.
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Investors must keep this Mid-Cap shipbuilding company on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.