Multibagger defence stock down 37% after 2,500% rally in 5 yrs; Is it time to buy?
Multibagger defence stock to buy: Brokerage firms continue to remain positive on Mazagon Dock Shipbuilders Ltd after its results for the December 2025 quarter.
- Feb 6, 2026,
- Updated Feb 6, 2026 11:25 AM IST
Multibagger defence stock to buy: Brokerage firms continue to remain positive on Mazagon Dock Shipbuilders Ltd after its results for the December 2025 quarter. Analysts tracking the counter believe that strong execution led to robust earning momentum and expectations for the PSU shipping player.
Mazagon Dock Q3 results
Mazagon Dock Shipbuilders reported a 9 per cent YoY rise in the net profit at Rs 880 crore, while revenue jumped 14.6 per cent YoY to Rs 3,601.1 crore for the quarter ended in December 2025. The state-run defence company's ebitda was up 8.6 per cent YoY to Rs 887 crore, while margin fell to 24.6 per cent. It announced an interim dividend of Rs 7.5 per share for FY26.
Mazagon Dock share price
Shares of Mazagon Dock dropped more than 1.3 per cent to Rs 2367.10 on Friday, with its market capitalization nearing Rs 95,000 crore. The stock has tumbled nearly 37 per cent from its 52-week high at Rs 3,778, hit in May 2025. Before this fall, the stock zoomed over 2,500 from its IPO price at Rs 145. Despite the correction, it is up 1,530 per cent from its IPO price.
Mazagon Dock target price
Mazagon Dock reported a Q3 profit beat led by higher-than-expected execution and supported by good operating profitability. Revenue growth was driven by execution of P17A Frigates and the ONGC order. The medium term order pipeline looks promising. Revenue growth is expected to remain subdued in FY27E, supported by a larger order book, said Antique Stock Brokers.
With most large orders now largely complete, future revenue growth will be driven by the commencement of execution of the P75-I order and finalization of orders for three additional submarines under P75 and the bidding of P17B Frigates. We remain positive on the stock given potential order wins, unmatched position in submarine building, and the focus on developing the shipbuilding sector," it added with a 'buy' and a target price of Rs 3,407.
"We expect it to close FY26 with Ebitda margins of 20 per cent. However, with the near completion of large, high-margin programmes such as P15B and P17A, we expect margins to moderate to 18 per cent in FY27, as execution shifts towards relatively lower-margin orders from the Indian Coast Guard, Multipurpose Hybrid Vessels and ONGC," said Nirmal Bang Institutional Equities.
"We retain our BUY rating and value the stock at 39 times December 2027E earnings, arriving at a target price of Rs 2,984 (earlier TP of Rs 3,518). We have revised our valuation multiple downward from 45 times to 39 times to reflect lower growth expectations, resulting in a 15 per cent reduction in our target price," it added.
Multibagger defence stock to buy: Brokerage firms continue to remain positive on Mazagon Dock Shipbuilders Ltd after its results for the December 2025 quarter. Analysts tracking the counter believe that strong execution led to robust earning momentum and expectations for the PSU shipping player.
Mazagon Dock Q3 results
Mazagon Dock Shipbuilders reported a 9 per cent YoY rise in the net profit at Rs 880 crore, while revenue jumped 14.6 per cent YoY to Rs 3,601.1 crore for the quarter ended in December 2025. The state-run defence company's ebitda was up 8.6 per cent YoY to Rs 887 crore, while margin fell to 24.6 per cent. It announced an interim dividend of Rs 7.5 per share for FY26.
Mazagon Dock share price
Shares of Mazagon Dock dropped more than 1.3 per cent to Rs 2367.10 on Friday, with its market capitalization nearing Rs 95,000 crore. The stock has tumbled nearly 37 per cent from its 52-week high at Rs 3,778, hit in May 2025. Before this fall, the stock zoomed over 2,500 from its IPO price at Rs 145. Despite the correction, it is up 1,530 per cent from its IPO price.
Mazagon Dock target price
Mazagon Dock reported a Q3 profit beat led by higher-than-expected execution and supported by good operating profitability. Revenue growth was driven by execution of P17A Frigates and the ONGC order. The medium term order pipeline looks promising. Revenue growth is expected to remain subdued in FY27E, supported by a larger order book, said Antique Stock Brokers.
With most large orders now largely complete, future revenue growth will be driven by the commencement of execution of the P75-I order and finalization of orders for three additional submarines under P75 and the bidding of P17B Frigates. We remain positive on the stock given potential order wins, unmatched position in submarine building, and the focus on developing the shipbuilding sector," it added with a 'buy' and a target price of Rs 3,407.
"We expect it to close FY26 with Ebitda margins of 20 per cent. However, with the near completion of large, high-margin programmes such as P15B and P17A, we expect margins to moderate to 18 per cent in FY27, as execution shifts towards relatively lower-margin orders from the Indian Coast Guard, Multipurpose Hybrid Vessels and ONGC," said Nirmal Bang Institutional Equities.
"We retain our BUY rating and value the stock at 39 times December 2027E earnings, arriving at a target price of Rs 2,984 (earlier TP of Rs 3,518). We have revised our valuation multiple downward from 45 times to 39 times to reflect lower growth expectations, resulting in a 15 per cent reduction in our target price," it added.