1:2 Stock Split By PSU Defence Stock: 27 December Record Date; Buy Navratna Stock?

One of India's top shipbuilding yards is Mazagon Dock Shipbuilders Limited, located in Mumbai and certified ISO 9001: 2015. In 1934, it was established as a private limited company. A vast array of items for both domestic and international clientele are included in the company's current portfolio of developments. One of India's top defence public sector undertaking shipyards, Mazagon Dock Shipbuilders Limited is a Navratna-designated institution under the Department of Public Enterprises.

Mazagon Dock Shipbuilders Stock Split Record Date

"Pursuant to Regulation 42 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that, the Company has fixed Friday 27 December, 2024 as the Record Date for the purpose of determining the eligibility of shareholders for sub-division/ split of existing 1 (One) Equity Share of face value of Rs. 10/- (Rupees Ten Only) each fully paid up into 2 (Two) Equity Shares of face value of Rs. 5/- (Rupees Five Only) each fully paid up," said the company in a stock exchange filing.

Mazagon Dock Shipbuilders Financials

For the quarter that ended in September 2024, the company's profit after tax (PAT) increased by 75.7% year on year to Rs 585 crore. In the same period last year, it was Rs 332.9 crore. The quarter's revenue from operations increased by 50.8% to Rs 2,756.8 crore in Q2FY25 from Rs 1,827.7 crore in the same quarter of the prior fiscal year. Compared to Rs 177 crore in the same quarter of the prior fiscal year, the company's EBITDA increased by 189.1% YoY to Rs 511 crore during the September 2024 quarter. In Q2 of FY25, the company's overall income climbed 44.8% YoY to Rs 3,011.1 crore from Rs 2,079.2 crore in Q2FY24. From Rs 1,672.5 crore in the second quarter of FY24 to Rs 2,270.6 crore in Q2FY25, the total expenses increased 37.76% YoY.

Mazagon Dock Shipbuilders Share Price Target

Tejas Khandelwal, Equity Research Analysts at Prudent Equity, said "Mazagon Dock Shipbuilders Ltd delivered strong Q2FY25 results with a 51% YoY growth in operating income and a 76% YoY jump in net profit. Operating margins more than doubled to 18%. As of November 2, 2024, the company holds a robust order book of Rs 39,994 crore, with Rs 27,982 crore from shipbuilding and Rs 12,019 crore from submarines and heavy engineering. This order book is 3.8x its trailing twelve-month revenue, ensuring solid near-term revenue visibility."

"Recent margin improvements have been driven by timely vessel deliveries, reducing costs below budgeted levels. While the milestone-based revenue recognition for new orders may temporarily pressure margins, we expect margins to remain above historical levels until FY27E, supported by major deliveries planned over the next 2-3 years. Despite new orders and potential opportunities, including P75, P75I, and next-gen destroyers, the stock appears fully valued at current levels," Tejas Khandelwal added.

"Mazagon Dock stock price is bullish on the Daily charts with strong support at 4513. A Daily close above resistance of 4700 could lead to a target of 5140 in the near term," said A R Ramachandran, Independent Research Analyst.

Disclaimer

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