Rs 36,839 crore order book and FIIs & DIIs increase stake: Debt-free multibagger shipbuilding stock jumps over 8 per from intraday low on stellar quarterly results (Q1FY25)

The stock gave multibagger returns of 170 per cent in just 1 year and a whopping 1,925 per cent in 3 years.

On Wednesday, shares of Mazagon Dock Shipbuilders Limited (MDL) gained 8.50 per cent to Rs 5,080 per share from its intraday low of Rs 4,681.65. The stock’s 52-week high of Rs 5,859.95 while its 52-week low is Rs 1,742. At the closing bell, the shares of the company were trading at Rs 4,997.10 per share, up 3.40 per cent from its previous closing of Rs 4,832.95.

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.

Mazagon Dock Shipbuilders Limited (MDL), a prominent Indian warship and submarine builder, achieved a significant milestone by being conferred the prestigious ‘Navratna’ Status on June 25, 2024. This elevation by the Ministry of Finance puts MDL in the league of the 21st Navratna Central Public Sector Enterprise (CPSE) in the country. Notably, MDL is the third defence PSU and the first shipyard ever to receive this distinction.

This recognition comes after years of strong performance by MDL. For the financial year 2023-24, the company reported a consolidated annual turnover of Rs 9,467 crore and a net profit of Rs 1,845 crore. Previously, MDL had secured the Miniratna status in 2006. The company also holds a significant stake (47.21 per cent) in Goa Shipyard Limited, another PSU under the Ministry of Defence. This elevation to Navratna status signifies MDL's consistent track record and its commitment to playing an even bigger role in strengthening India's defence capabilities in the years to come.

Mazagon Dock Shipbuilders Limited (MDL) secured a contract worth Rs 4,676.32 crore from Oil and Natural Gas Corporation Limited (ONGC) on August 8, 2024. This contract entails the fabrication and installation of Wellhead Platforms and Associated Pipeline Projects under the Discovered Small Fields (DSF-II) on an EPC (Engineering, Procurement, and Construction) reimbursable basis.

The project, valued at Rs 4676,32,59,503/- including taxes, is set to be completed by May 31, 2026. Both MDL and ONGC are government-owned companies and this contract is not considered a related party transaction.

According to its Quarterly Results, the net sales increased by 8.5 per cent to Rs 2,357.02 crore and net profit increased by 121.45 per cent to Rs 696.10 crore in Q1FY25 compared to Q1FY24. 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 June 30, 2024, the company is debt-free.

As of June 30, 2024, the company’s order book stands at Rs 36,839 crore and as of June 2024, FIIs and DIIs have increased their stakes to 2.44 per cent & 0.83 per cent, respectively compared to 2.38 per cent & 0.66 per cent, respectively in March 2024. The company has a market cap of over Rs 1,00,000 crore. The stock gave multibagger returns of 170 per cent in just 1 year and a whopping 1,925 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. 

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