Mazagon Dock shares hit 52-week high on defence deal for submarine

Shares of multibagger shipbuilding firm Mazagon Dock Shipbuilders Ltd hit a 52-week high today after the firm inked a Rs 2725 crore contract for Medium Refit with Life Certification (MRLC) of Sub-Surface Killer (SSK) Class of Submarine “INS Shankush” with the Ministry of Defence.  

Shares of Mazagon Dock Shipbuilders hit 52-week high of Rs 1341, rising 7.55% in early trade today. It opened higher at Rs 1280 against the previous close of Rs 1246.85 on BSE. Market cap of the firm climbed to Rs 26,651 crore.   

At 11:22 am, the Mazagon Dock stock was trading 6% higher at Rs 1321 on BSE.  

Total 3.02 lakh shares changed hands amounting to a turnover of Rs 39.94 crore on BSE. Mazagon Dock stock has gained 434% in a year and risen 67.36 per cent in 2023. Mazagon Dock stock hit a 52-week low of Rs 241.60 on July 1, 2022.   

In terms of technicals, Mazagon Dock stock has a one-year beta of 1.5, 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.   

Vaibhav Kaushik, Research Analyst, GCL Broking said, "The stock is trading above all averages but the gap has risen between averages.  So buy on dips is recommended. Buying range is  Rs 1160 to Rs 1200. Keep stop loss at Rs 1088 with a target of Rs 1470 to 1640."

The delivery of the submarine will be carried out post-MRLC in 2026. 

Shankush is an SSK Class of Submarine to be re-fitted at MDL as the lead contractor which will be supported by over 30 MSMEs. 

According to the statement from the Indian navy, INS Shankush will be combat-ready and will join the active fleet of the Indian Navy with upgraded combat capability. 

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. 

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