Correction over in Mazagon Dock? Shares nearly triple from 52-week low; price targets, outlook & more

Mazagon Dock share price today: Shares of Mazagon Dock Shipbuilders Ltd have recovered nearly three times from their 52-week low touched in March this year. Mazagon Dock stock rose 175% from Rs 1,797.10 on March 14 this year. A majority of these gains (82%) came in the last six months. The multibagger defence stock rose nearly 5% intraday to Rs 4,925 on Wednesday against the previous close of Rs 4705.35. Total 2.88 lakh shares of the firm changed hands amounting to a turnover of Rs 139.71 crore.

The defence stock has gained 141% in a year and risen 433% in two years. The stock has climbed 1,733% in three years.

In terms of technicals, the relative strength index (RSI) of Mazagon Dock stands at 67.9, signaling it's trading neither in the overbought nor in the oversold zone. Mazagon Dock shares are trading higher than the 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

Jigar S Patel, manager at Anand Rathi said, "Support will be Rs 4,700 and resistance Rs 4,900. A decisive move above the Rs 4,900 level may trigger a further upside of Rs 5100. The expected trading range will be between Rs 4,650-Rs 5,100 for the short-term."

The stock is among Axis Securities' top technical picks.

"The stock found support at the 50% Fibonacci retracement of the rally from Rs 1795 to  Rs 5830, positioned at Rs 3830, confirming a mediumterm support base. The daily Relative Strength Index (RSI) is sustaining above its reference line, indicating a positive bias. The RSI has broken above the downward-sloping trendline, further confirming the validity of the breakout in price action. Following the pattern breakout, the stock is expected to commence an uptrend, with target levels projected at Rs 4965 &  Rs 5085," said Axis Securities.

Antique Broking has revised its target price to Rs 5513 against the earlier target of Rs 5483

"The company has been nominated for three follow-on orders of Scorpene submarines (the first submarine expected to be delivered in six years, followed by the remaining two in the next two years). On the non-defence front, the focus is on ship building and green energy platforms such as hybrid ferries, green tugs, which offer decent opportunities for growth. We roll over our earnings estimate to FY27 (from 1HFY27 earlier) and maintain BUY rating with a target price of Rs 5,513 (earlier Rs 5,483) at a core target P/E multiple of 28x FY27 earnings," said Antique Broking.

On the other hand, JP Morgan has a neutral rating on the stock with a price target of Rs 4248.

A R Ramachandran, a SEBI-registered independent analyst says, "Mazagon Dock stock price is bullish but also overbought on the intraday charts with the next resistance at Rs 5,065. Investors should be booking profits at current levels as a daily close below support of Rs 4,705 could lead to a target of Rs 4118 in the near term."

Mazagon Dock Shipbuilders Ltd (MDSL) is a leading defence public sector undertaking shipyard under the Ministry of Defence (MoD). Mazagon Dock is primarily engaged in constructing and repairing warships and submarines for MoD and other types of vessels i.e. cargo ships, multipurpose support vessels, barges and border outposts, tugs, dredgers, water tankers, etc. for commercial clients.