Rs 34,787 crore Order Book: This Defense Shipbuilding Company Likely to Announce Second Interim Dividend for the Financial Year 2024-25
With a PE ratio of 38.8, the company trades at a discount compared to the industry PE of 48.9. The company has ROCE of 44.2 per cent and ROE of 35.21 per cent.
Mazagon Dock Shipbuilders Limited, a prominent player in India's shipbuilding industry, has announced a board meeting scheduled for April 8, 2025, to consider the declaration of a second interim dividend for the financial year 2024-25. Mazagon Dock Shipbuilders Limited has been recognized for its significant contributions to the defense sector, specializing in the construction and repair of warships and submarines. The company's stock has been identified as a multibagger, delivering impressive returns over the past three years.
Mazagon Dock Shipbuilders Limited, established in 1774, is a leading shipyard in India, specializing in the construction and repair of warships and submarines for the Ministry of Defence and commercial vessels. The company has built 802 vessels, including advanced ships for the Indian Navy and Coast Guard. It holds a Navratna status and has a diversified portfolio, including Maintenance, Repair & Overhaul (MRO) services and offshore projects.
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The company's revenue mix for FY24 shows 97 per cent from manufacturing and 3 per cent from repairs. As of Q2 FY25, its order book stands at Rs 39,872 crore, with 37 vessels scheduled for delivery. Mazagon Dock has partnered with ThyssenKrupp Marine Systems for Project 75I to build submarines in India, focusing on indigenization and reducing reliance on imports. The company is expanding its capacity with significant investments in new facilities, including a greenfield shipyard and a floating dry dock. It is also advancing AI-enabled inspections and R&D initiatives in collaboration with academic institutions and startups.
Mazagon Dock Shipbuilders Limited has a market capitalization of Rs 108,802 crore. The stock has delivered a 1-year return of 184.09 per cent and an impressive 3-year return of 2120.84 per cent. As of March 28, 2025, the stock price of Mazagon Dock Shipbuilders Limited is Rs 2643.35. The 52-week high is Rs 2841.1, and the 52-week low is Rs 930.45.
In the Quarterly Results of December 2024, the company reported a revenue of Rs 3,143.62 crore, reflecting a YoY growth of 33.06 per cent compared to Rs 2,362.47 crore in December 2023. The operating profit stood at Rs 817.10 crore, marking a 51.54 per cent increase from Rs 539.18 crore in the same quarter last year. The profit after tax (PAT) stood at Rs 807.04 crore, up 28.76 per cent from Rs 626.78 crore in December 2023.
In FY24, the company posted a revenue of Rs 9,466.58 crore, registering a 20.94 per cent growth compared to Rs 7,827.18 crore in FY23. The net profit for the year stood at Rs 1,936.97 crore, up 73.09 per cent from Rs 1,119.03 crore in the previous financial year.
With a PE ratio of 38.8, the company trades at a discount compared to the industry PE of 48.9. The company has ROCE of 44.2 per cent and ROE of 35.21 per cent. Company's current order book stands at Rs 34,787 crore as of December 31, 2024.
Disclaimer: The article is for informational purposes only and not investment advice.