Rs 39,872 Crore Order Book: Debt-Free Defence Shipbuilding Stock Jumps Over 10%; Keel Laying Ceremony Of 01 Training Ship For Indian Coast Guard

The stock gave multibagger returns of over 150 per cent from its 52-week low of Rs 898.55 per share and a whopping 1,500 per cent in 3 years.

On Tuesday, shares of Mazagon Dock Shipbuilders Limited (MDL) gained 10.9 per cent to Rs 2,250 per share from its previous closing of Rs 2,029.05 per share. The stock’s 52-week high of Rs 2,929.98 while its 52-week low is Rs 898.55. The shares of the company saw a spurt in volume by more than 3.11 times on BSE.

Mazagon Dock Shipbuilders Ltd (MDL) has achieved a significant milestone with the keel laying ceremony of a new Training Ship for the Indian Coast Guard on January 13, 2025. This event marks the commencement of production activities for the vessel, which began on April 26, 2024. The ceremony was presided over by IG H K Sharma, TM, DDG (M&M), and attended by key officials from the Indian Coast Guard, Classification societies (ABS & IRS), and MDL.

The Training Ship, valued at Rs 310 crores, is being designed and built by MDL as per the contract signed with the Indian Coast Guard. This vessel will be equipped with two diesel engines, capable of achieving speeds exceeding 20 knots. With a total complement of 223 personnel, including 70 under-trainee officers and 46 training staff, the ship will serve as a crucial platform for basic sea training and provide valuable exposure to all aspects of Coast Guard life at sea.

The Training Ship is designed for operations in ocean environments and will be capable of accommodating a helicopter. It will play a vital role in enabling the Indian Coast Guard to fulfil its diverse range of duties. The vessel is scheduled for delivery in December 2026, and today's keel laying ceremony signifies a crucial step forward in its construction by MDL.

About Mazagon Dock Shipbuilders Limited (MDL)

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.

According to its Quarterly Results, the net sales increased by 51 per cent to Rs 2,756.8 crore and net profit increased by 82 per cent to Rs 552.8 crore in Q2FY25 compared to Q2FY24. Looking at its half-yearly results, the net sales increased by 28 per cent to Rs 5,113.9 crore and net profit increased by 106 per cent to Rs 1,218.7 crore in H1FY25 compared toH1FY24 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 September 30, 2024, the company is debt-free.

The Board announced a stock split in the ratio of 1:2 i.e., the existing 1 equity share of the face value of Rs 10 each fully paid up shall be sub-divided/ stock split into 2 equity shares of the face value of Rs 5 each fully paid up. The Board fixed the record date for the stock split as Friday, December 27, 2024.

As of September 30, 2024, the company’s order book stands at Rs 39,872 crore and as of September 2024, DIIs have increased their stakes to 1 per cent compared to 0.83 per cent in June 2024. The company has a market cap of over Rs 90,000 crore. The stock gave multibagger returns of over 150 per cent from its 52-week low of Rs 898.55 per share and a whopping 1,500 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.