Rs 37,500 crore order book: Heavy buying in this multibagger shipbuilding stock; scrip jumps over 10 per cent after huge orders from MoD, ONGC & European client!

The stock gave multibagger returns of 185 per cent in just 1 year and a whopping 1,000 per cent in 3 years.

The Indian benchmark indices ended the trading session in green on Tuesday, December 26, 2023. BSE Sensex Index gained 0.32 per cent and NSE Nifty-50 Index gained 0.43 per cent. On the same day, the market capitalization of BSE-listed companies was Rs 3,58,85,167 crore or approx. Rs 359 lakh crore.

Along with the market in green, one multibagger shipbuilding stock was trading in green. The stock surged 10.02 per cent to an intraday high of Rs 2,332.05 per share from its previous closing of Rs 2,119.85. At the closing bell, shares of the company were trading at Rs 2,288.70 per share, up 7.97 per cent with a spurt in volume by more than 2.6 times on BSE.

The stock name is MAZAGON DOCK SHIPBUILDERS LIMITED (MDL).

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.

Earlier, the company received 3 huge orders from various clients. Here are the details: -

Order No.1 - Oil and Natural Gas Corporation Limited (ONGC) has placed a Notification of Award of Contract on December 07, 2023, on Mazagon Dock Shipbuilders Ltd for Part Replacement of Pipeline Project (PRPP) on a turnkey basis at a total lump sum price of Rs 11,45,10,47,012.06 including all taxes and duties.

Order No.2 - (MDL) has signed individual shipbuilding contracts with the European client for the construction of 3 units of 7,500 DWT Multi-Purpose Hybrid Powered Vessels on December 14, 2023, for a value of approx. USD 42 million.

Order No.3 - (MDL) has signed a contract with the acquisition wing of the Ministry of Defence for the construction and delivery of 6 next-generation offshore patrol vessels (NGOPVs) for the Indian Coast Guard (ICG) on December 20, 2023. The order is worth Rs 1,600 crore.

Additionally, marking a historical shift in eco-friendly maritime transport, India unveils SaurShakti, its fastest solar-electric boat. This collaborative effort between MDL and NavAlt boasts a top speed of 12 knots, a 7-hour range per charge, and silent, emission-free operation. SaurShakti comfortably accommodates 12 passengers on its sustainable journey, leaving a cleaner, greener future for India's waterways.

As of September 30, 2023, the company’s order book stands at Rs 37,500 crore and FIIs have increased their stakes to 3.69 per cent from 3.29 per cent in June 2023. The company has a market cap of over Rs 46,000 crore. The stock gave multibagger returns of 185 per cent in just 1 year and a whopping 1,000 per cent in 3 years.

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Disclaimer: The article is for informational purposes only and not investment advice.