Rs 38,561 crore order book and FIIs & DIIs increase stake in Q1FY25: Debt-free multibagger shipbuilding stock jumps over 8 per from intraday low with heavy volume!

The stock gave multibagger returns of 168 per cent in just 1 year and a whopping 1,860 per cent in 3 years.

On Wednesday, shares of Mazagon Dock Shipbuilders Limited (MDL) gained 8.33 per cent to Rs 4,915.65 per share from its intraday low of Rs 4,537.85. The stock’s 52-week high of Rs 5,859.95 while its 52-week low is Rs 1,714.35. At the closing bell, the shares of the company were trading at Rs 4,844.40 per share, up 4.34 per cent from its previous closing of Rs 4,642.70 and saw a spurt in volume by more than 1.83 times on BSE.  The company has not made any significant announcements of late. Hence, the rally in the share price could be driven purely by the market forces. 

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.

According to its Quarterly Results, the net sales increased by 51 per cent to Rs 3,452.37 crore and net profit increased by 103 per cent to Rs 662.97 crore in Q4FY24 compared to Q4FY23. 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 March 31, 2024, the company is debt-free.

As of March 31, 2024, the company’s order book stands at Rs 38,561 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 97,000 crore. The stock gave multibagger returns of 168 per cent in just 1 year and a whopping 1,860 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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