Mazagon Dock is a multibagger in the defence and shipping sector, holding a Navratna status. This mega company will be in focus on the BSE and NSE during Monday's trading sessions, as investors await its Q1 results. During the April-June quarter, Mazagon Dock witnessed a healthy appetite from FIIs/FPIs and mutual funds.
Mazagon Dock Shipbuilders Share Price:
Last week, on July 25, Mazagon Dock shares closed at Rs 2,886.70 apiece, down 2.5% on the BSE, with a market capitalisation of Rs 1,16,443.70 crore. The stock's 52-week high and low are at Rs 3,778 apiece and Rs 1,917.95 apiece.
Despite the latest performance, Mazagon Dock has given double-digit returns to investors in the past six months, to the tune of nearly 25%. YTD, the stock has jumped by nearly 29%.
Mazagon Dock has a strong return on equity of 35.47%. But this Navratna PSU giant is also a multibagger in the long term.
In the past five years, Mazagon Dock has given 3,344.01% returns to its investors on BSE, despite carrying one stock split and paying 10 dividends so far during the period. The stock debuted on BSE and NSE in February 2021; since then, it has become a star performer.
Mazagon Dock Stock Split:
Following the strong performance in stock price, Mazagon Dock split for the first time in December 2024, in the ratio of 1:2. That being said, the face value of Mazagon Dock is down to Rs 5 from earlier Rs 10. A stock split improves liquidity and becomes affordable to both new and existing investors.
Mazagon Dock Dividends:
Since February 2021, the company has rewarded investors with at least 10 dividends, as per Trendlyne data. In the past 12 months, the stock gave a whopping Rs 38.30 per share dividend.
Its current dividend yield is around 0.72%.
Mazagon Dock Shipbuilders Q1 Results Preview:
The company will declare its Unaudited Financial Results (Standalone and Consolidated) for the quarter ended on 30 June 2025, on Monday.
During its earnings call for Q4FY25, Mazagon Dock's management revealed that they are expecting 8%-10% growth in revenue for the financial year 2025-26, which is slightly lower than its earlier projection of 10-12%. Also, profit before tax margins are expected to be around 15%.
Also, Angel Broking report last month said, despite the near-term margin pressures, Mazagon Dock remains optimistic about its long-term outlook. The management cited favourable geopolitical conditions that are boosting demand for both defence and commercial shipbuilding. As a result, the company expects its order book to swell to over Rs 1.25 lakh crore in FY26, from the current Rs 32,260 crore, contingent upon the successful signing of two significant submarine contracts - the additional P75 and the P75I projects.
Overall, in FY25, Mazagon Dock reported highest ever revenue of Rs 11,432 crore, higher from Rs 9,467 crore in FY24. PAT jumped to Rs 2,3225 crore versus Rs 1,845 crore.
As of March 31, 2025, the company had an order book of Rs 32,260 crore.
Should You Buy Mazagon Dock Shares?
As per Trendlyne data, the consensus recommendation from 4 analysts for Mazagon Dock Shipbuilders Ltd. is SELL. However, EPS is expected to grow by 23.7% in FY26. Also, the target price is at Rs 2958.40 apiece, hinting at nearly 2.5% potential upside ahead.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.
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