Rs 36,839 Crore Order Book: Debt-Free Multibagger Shipbuilding Stock Jumps Over 7 Per Cent With 3 Times Surt In Volume On BSE
The stock gave multibagger returns of over 100 per cent in just 1 year and a whopping 1,550 per cent in 3 years.
On Tuesday, shares of Mazagon Dock Shipbuilders Limited (MDL) gained 7.47 per cent to Rs 4,599 per share from its previous closing of Rs 4,279.05. 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 4,402.90 per share, up 2.89 per cent with 3 times spurt in volume on BSE.
Mazagon Dock Shipbuilders Limited (MDL), a renowned Indian shipyard established in 1774, has a rich history of building a wide range of vessels, including warships, submarines, cargo/passenger ships, and offshore platforms. Having constructed over 800 vessels since 1960, MDL has consistently demonstrated its shipbuilding prowess. In recognition of its significant contributions to India's Defence industry, MDL was conferred the prestigious 'Navratna' status in June 2024, joining the ranks of India's top-performing public sector enterprises. This elevation is a testament to MDL's strong financial performance, consistent track record, and commitment to strengthening India's defence capabilities.
Maharashtra State Power Generation Company Limited (MAHAGENCO) has contracted Mazagon Dock Shipbuilders Limited to implement a sophisticated AI-based security system at its GTPS-Uran and KGSC-Pophali power plants. This project, valued at Rs 121.67 crores, aims to strengthen the security and surveillance capabilities of these critical infrastructure facilities. Both companies are government-owned, ensuring transparency and eliminating any potential conflicts of interest. The project is expected to be completed by October 2025.
In another significant development, Mazagon Dock Shipbuilders Ltd (MDL) has commenced production on its first Multipurpose Cargo Vessel (MPV) for Navi Merchants, Denmark. The vessel, one of six to be built under a contract worth USD 86.05 million, will feature hybrid propulsion, adhering to strict environmental standards. Designed for operation in icy conditions, the MPVs will be equipped with advanced technology, including a medium-speed diesel engine and electrical energy storage systems. Capable of transporting various types of cargo, the first vessel is scheduled for delivery in April 2026.
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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 88,000 crore. The stock gave multibagger returns of over 100 per cent in just 1 year and a whopping 1,550 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.