Mazagon Dock shares snap three-day gaining streak; what’s next for the defence stock?
Multibagger stock: Mazagon Dock shares surged from Rs 1905.10 on September 6 , 2023 to Rs 2271.15 on September 11, implying a gain of 19.21% in the preceding three sessions. Shares of Mazagon Dock also surged to a record high of Rs 2483 on September 8, 2023.
- Sep 12, 2023,
- Updated Sep 12, 2023 2:09 PM IST
Shares of multibagger Mazagon Dock Shipbuilders Ltd snapped their three-day gaining streak on Tuesday. The defence stock surged from Rs 1905.10 on September 6 , 2023 to Rs 2271.15 on September 11, implying a gain of 19.21% in the preceding three sessions. Shares of Mazagon Dock also surged to a record high of Rs 2483 on September 8, 2023.
The PSU defence stock slipped 11.65% intraday to Rs 2006.40 in the current session against the previous close of Rs 2271.15 on BSE. Market cap of the firm fell to Rs 42,617 crore. Total 1.53 lakh shares changed hands amounting to a turnover of Rs 32.68 crore on BSE. Mazagon Dock stock hit a 52-week low of Rs 412 on September 15, 2022.
In a year, the stock has delivered stellar returns of 392.20% and risen 167.71% in 2023.
In terms of technicals, the relative strength index (RSI) of the stock stands at 81.3, signaling the stock has entered the overbought zone. Mazagon Dock stock has a one-year beta of 1.9, indicating very high volatility during the period. Mazagon Dock shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Here’s a look at what analysts said on the technical outlook of the stock.
Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, "The stock after the consolidation phase has once again given a decent spurt with strong bias maintained and huge volume participation, indicating a bullish candle breakout above the previous hurdle of Rs 2000 levels. The next upside target is at around Rs 2470 levels with Rs 1950 zone maintained as the near-term support levels."
Abhijeet from Tips2Trades said, “Mazagon Dock stock price is overbought on the Daily charts with next resistance at Rs 2293. Investors should book profits at current levels as a close below the support of Rs 1901 could lead to a target of Rs 1592 in the near term."
Vaibhav Kaushik, Research Analyst, GCL Broking said, “At these levels, the stock looks overbought on technical basis. But if we see on valuation basis, there is still comfort. The company has more than 5 years of order visibility and flow of orders are likely to rise. Buy on dips is advisable near Rs 1700 to Rs 1800 levels. Keep a stop loss of Rs 1620 with a target of Rs 2400.”
Meanwhile, Antique Stock Broking said it continues to remain optimistic on Mazagon Dock Shipbuilders.
For the current order backlog, it estimates 27 per cent capacity utilisation in submarine till FY25E as against the optionality of winning new orders (like P75I) and ramping up utilisation to 81 per cent. It said there is Rs 1.3 lakh crore of non-submarine works, where Mazagon Dock Shipbuilders has an upper-hand in winning repeat of P17A and NGD. Besides, there are Rs 10,000 crore-plus medium-life refit orders that will keep the repair revenue intact, Antique noted while maintaining a 'BUY' on the stock.
In the first quarter of the current fiscal, net profit rose 40% to Rs 314.3 crore against Rs 224.8 crore in the corresponding quarter of the last year. Revenue climbed to Rs 2405 crore in Q1 against Rs 2366.5 crore revenue in the June 2022 quarter. However, earnings before interest, tax, depreciation and amortisation (EBITDA) fell to Rs 171.7 crore in Q1 against Rs 173.7 crore year on year. EBITDA margins rose marginally to 7.9 percent versus 7.79 percent in the corresponding quarter of last year.
Mazagon Dock Shipbuilders Ltd (MDS) is a shipbuilding and offshore fabrication yard. The company's major activities include shipbuilding, ship repairs and fabrication of offshore structures. It provides warships, merchant ships, submarines, support vessels, offshore platforms, passenger cum cargo vessels, trawlers, main and helidecks and barges.
Disclaimer: Under no circumstances should any person at this platform make trading decisions based solely on the information discussed herein. You should consult a qualified broker or other financial advisor prior to making any actual investment or trading decisions. All information is for educational and informational use only. Business Today does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same.
Also read: L&T, PowerGrid, Jupiter Wagons, HFCL, other stocks to watch on September 12, 2023
Shares of multibagger Mazagon Dock Shipbuilders Ltd snapped their three-day gaining streak on Tuesday. The defence stock surged from Rs 1905.10 on September 6 , 2023 to Rs 2271.15 on September 11, implying a gain of 19.21% in the preceding three sessions. Shares of Mazagon Dock also surged to a record high of Rs 2483 on September 8, 2023.
The PSU defence stock slipped 11.65% intraday to Rs 2006.40 in the current session against the previous close of Rs 2271.15 on BSE. Market cap of the firm fell to Rs 42,617 crore. Total 1.53 lakh shares changed hands amounting to a turnover of Rs 32.68 crore on BSE. Mazagon Dock stock hit a 52-week low of Rs 412 on September 15, 2022.
In a year, the stock has delivered stellar returns of 392.20% and risen 167.71% in 2023.
In terms of technicals, the relative strength index (RSI) of the stock stands at 81.3, signaling the stock has entered the overbought zone. Mazagon Dock stock has a one-year beta of 1.9, indicating very high volatility during the period. Mazagon Dock shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Here’s a look at what analysts said on the technical outlook of the stock.
Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, "The stock after the consolidation phase has once again given a decent spurt with strong bias maintained and huge volume participation, indicating a bullish candle breakout above the previous hurdle of Rs 2000 levels. The next upside target is at around Rs 2470 levels with Rs 1950 zone maintained as the near-term support levels."
Abhijeet from Tips2Trades said, “Mazagon Dock stock price is overbought on the Daily charts with next resistance at Rs 2293. Investors should book profits at current levels as a close below the support of Rs 1901 could lead to a target of Rs 1592 in the near term."
Vaibhav Kaushik, Research Analyst, GCL Broking said, “At these levels, the stock looks overbought on technical basis. But if we see on valuation basis, there is still comfort. The company has more than 5 years of order visibility and flow of orders are likely to rise. Buy on dips is advisable near Rs 1700 to Rs 1800 levels. Keep a stop loss of Rs 1620 with a target of Rs 2400.”
Meanwhile, Antique Stock Broking said it continues to remain optimistic on Mazagon Dock Shipbuilders.
For the current order backlog, it estimates 27 per cent capacity utilisation in submarine till FY25E as against the optionality of winning new orders (like P75I) and ramping up utilisation to 81 per cent. It said there is Rs 1.3 lakh crore of non-submarine works, where Mazagon Dock Shipbuilders has an upper-hand in winning repeat of P17A and NGD. Besides, there are Rs 10,000 crore-plus medium-life refit orders that will keep the repair revenue intact, Antique noted while maintaining a 'BUY' on the stock.
In the first quarter of the current fiscal, net profit rose 40% to Rs 314.3 crore against Rs 224.8 crore in the corresponding quarter of the last year. Revenue climbed to Rs 2405 crore in Q1 against Rs 2366.5 crore revenue in the June 2022 quarter. However, earnings before interest, tax, depreciation and amortisation (EBITDA) fell to Rs 171.7 crore in Q1 against Rs 173.7 crore year on year. EBITDA margins rose marginally to 7.9 percent versus 7.79 percent in the corresponding quarter of last year.
Mazagon Dock Shipbuilders Ltd (MDS) is a shipbuilding and offshore fabrication yard. The company's major activities include shipbuilding, ship repairs and fabrication of offshore structures. It provides warships, merchant ships, submarines, support vessels, offshore platforms, passenger cum cargo vessels, trawlers, main and helidecks and barges.
Disclaimer: Under no circumstances should any person at this platform make trading decisions based solely on the information discussed herein. You should consult a qualified broker or other financial advisor prior to making any actual investment or trading decisions. All information is for educational and informational use only. Business Today does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same.
Also read: L&T, PowerGrid, Jupiter Wagons, HFCL, other stocks to watch on September 12, 2023