Mazagon Dock Shipbuilders Ltd is the leading company in India's defense industry. It manufactures warships, submarines, and offshore platforms. This company is located in Mazagaon, Mumbai, and was established long ago in 1934. The Indian government currently holds 84.83% of the shareholding in the public-limited Mazagon Dock.
As of November 6, 2024, Mazagon Dock's share price jumped up by 2.44%. The share price rose by ₹102.30 with a jump to ₹4,300.10 per share. The company was well on track and recently has come on track after the excellent results on a quarterly basis. Its overall movement of the share indicates that its overall positive aspect concerning the company's performance, which has been slowly rising back again.
Mazagon Dock 87.98% YTD gain: The company had declared its second-quarter results in early November where it had put forward high growth figures both on revenues as well as profit. Revenues for Q2 FY25 came at ₹2,757 crore with a rise of 51% over the corresponding last year's period, the net profit doubled more than twice to ₹585 crore for the quarter. This profit growth reflects good positioning for Mazagon Dock in the defense sector, especially for high-value shipbuilding and repair projects.
The EBITDA of the company has also gone up phenomenally by 189.1% on a year-on-year basis, jumping from ₹177 crore in Q2 FY24 to ₹511 crore in Q2 FY25. Increased profitability has led to hikes in EBITDA margins that grew 8.86%, from 9.7% to 18.5%. These are some phenomenal numbers wherein Mazagon Dock not only generates revenue but is gradually becoming efficient in its operations also.
One of the major takeaways was that the company had sanctioned a 1:2 share split. That meant the face value of each of its shares was changed from ₹ 10 to ₹ 5. This can create a more investment-friendly atmosphere for smaller investors like retail ones. Being part of an older tradition, Mazagon Dock declared its very first share-split in the annals and it symbolises the confidence related to the finance of the future.
Mazagon Dock is available at ₹4,300.10. It has struck a day's high at ₹4,327.95 and a low at ₹4,220. Its 52-week high went up to ₹5,860 while the 52-week low touched ₹1,795.40. This has, however, been the hallmark of volatility; on the other hand, this again proves the strength of the company as it has managed to rebound in recent times from the nadir that it had hit. Mazagon Dock holds a market capitalization of ₹85,900.78 crore and the enterprise value of the company at ₹71,691.15 crore.
The volatility in the share has not doused Mazagon Dock's returns as seen in the last three years. The share has risen by a healthy 1,334%, and over the last two years, it has posted returns of 449%. With such a track record on track, the growth trend seen in the performance is really optimistic and promising.
Its importance in India's defense sector and strong future prospects have led to substantial optimism in its company performance.
Obviously, the company is boasting a pretty good financial position with healthy EPS at ₹110.31 for the TTM, depicting decent growth in earnings supported by 72.03% growth in profit. The return on equity was at 37.86%, which depicts a good use of shareholder capital. In the same manner, the ROCE also appeared to be pretty decent at 50.80%, thus highlighting the high operating efficiency of the company.
Mazagon Dock has witnessed the profit after tax for the second quarter of FY25 at ₹585 crore, growing 75.76% over the same quarter last year. Over the years, the company has successfully proven its capability to execute long-term defence contracts in the form of construction and repairs of naval ships and submarines for the Indian Navy. Mazagon Dock is cash-healthy with a position at ₹14,209.63 crore and no debt against its name.
Despite mixed analyst ratings, positive market sentiment about Mazagon Dock's share persists. As the overall growth experience rose with the increasing price of shares has not yet reflected a weak shift for investors as of now. In fact, the market remains optimistic with a third weak sell rating against one selling suggestion, while the third advice to the company was a strong buy rating. This somehow indicates the optimistic growth belief of investors about the overall future of the company given the current increased focus on its defence sector in India.
The same share has proven to be very beneficial for the long-term investor owners of Mazagon Dock. It is evident that it has been growing in more than just its finances. Its share performance reflects such good promise for future outcomes. Continued government support along with its growing portfolio of warships, submarines, and other maritime assets sets Mazagon Dock up well for future success.
Mazagon Dock Shipbuilders Ltd have performed amazingly, as share prices reflect not only the great financial result and growth but also that of large revenue, profit, and EBITDA increases and puts the company in an even better position, thereby a likely continuing to grow and be successful.
Investors have already gained handsome returns over the recent years, and share-splitting has added a sweet gloss to it. At the same time, with its Indian government holding 84.83% of the shareholding, Mazagon Dock is an extremely crucial stakeholder in the Indian Defence business. As long as Mazagon continues to execute on orders related to defence and innovative leadership in shipbuilding, one feels that its shares will be a strong portfolio item for long-term investment.