This defence stock rose 404% to record high in a year; what’s next?
Multibagger stock: The defence shares surged 9.64% to a high of Rs 2088.85 on BSE against the previous close of Rs 1905.10. Market cap of the firm climbed to Rs 41,596 crore.
- Sep 7, 2023,
- Updated Sep 7, 2023 1:07 PM IST
Shares of multibagger Mazagon Dock Shipbuilders Ltd rose nearly 10% to a record high amid high volatility in the market today. The defence stock surged 9.64% to a high of Rs 2088.85 on BSE against the previous close of Rs 1905.10. Market cap of the firm climbed to Rs 41,596 crore. With today's rally, Mazagon Dock stock has risen 161% this year.
In a year, the stock has delivered stellar returns of 404%. Total 2.14 lakh shares changed hands amounting to a turnover of Rs 43.37 crore on BSE. Mazagon Dock stock hit a 52-week low of Rs 379.05 on September 7, 2022. The stock has surged 402.59% from its 52 week low in a year.
In terms of technicals, the relative strength index (RSI) of the stock stands at 60.9, signaling the stock is trading neither in the oversold nor overbought zone. Mazagon Dock stock has a one-year beta of 1.8, 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 the what analysts say on the outlook of the stock.
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.”
Ravi Singh, market expert said, “The Indian defence sector has experienced significant reforms, leading to improved efficiency, self-reliance, and capabilities. In view of the upcoming G20 summit, there is much more to happen in these defence stocks. Mazagon Dock outlook is positive from medium-to-long term perspective with a possibility of touching the levels of Rs 2250 in near term.”
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: Bharti Airtel, Indian Hotels, ITI: Trading strategy for these buzzing stocks
Shares of multibagger Mazagon Dock Shipbuilders Ltd rose nearly 10% to a record high amid high volatility in the market today. The defence stock surged 9.64% to a high of Rs 2088.85 on BSE against the previous close of Rs 1905.10. Market cap of the firm climbed to Rs 41,596 crore. With today's rally, Mazagon Dock stock has risen 161% this year.
In a year, the stock has delivered stellar returns of 404%. Total 2.14 lakh shares changed hands amounting to a turnover of Rs 43.37 crore on BSE. Mazagon Dock stock hit a 52-week low of Rs 379.05 on September 7, 2022. The stock has surged 402.59% from its 52 week low in a year.
In terms of technicals, the relative strength index (RSI) of the stock stands at 60.9, signaling the stock is trading neither in the oversold nor overbought zone. Mazagon Dock stock has a one-year beta of 1.8, 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 the what analysts say on the outlook of the stock.
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.”
Ravi Singh, market expert said, “The Indian defence sector has experienced significant reforms, leading to improved efficiency, self-reliance, and capabilities. In view of the upcoming G20 summit, there is much more to happen in these defence stocks. Mazagon Dock outlook is positive from medium-to-long term perspective with a possibility of touching the levels of Rs 2250 in near term.”
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: Bharti Airtel, Indian Hotels, ITI: Trading strategy for these buzzing stocks