Mazagon Dock shares rise on order win to build Coast Guard ship

Shares of Mazagon Dock Shipbuilders Ltd gained over 3% in early deals today after the defence firm inked a contract with Acquisition wing of Ministry of Defence for construction and delivery of one training ship for Indian Coast Guard (ICG) at a cost of  Rs 310 crore. Mazagon Dock stock climbed 3.52% to an intraday high of Rs 2230.60 on BSE. Total 0.56 lakh shares of the firm changed hands amounting to a turnover of Rs 12.28 crore. Market cap of Mazagon Dock  rose to Rs 44,148 crore on BSE. Mazagon Dock shares have a one-year beta of 1.8, indicating very high volatility during the period. Mazagon Dock stock ended at Rs 2154.65 on October 17, 2023.   

In terms of technicals, the relative strength index (RSI) of Mazagon Dock stands at 53.8, signaling it's trading neither in the overbought nor in the oversold zone. Mazagon Dock stock stands higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day and 200 day moving averages.  

Last week, the firm said it inked a letter of intent (LoI) with a European client. The LoI outlines plans for the construction of six firm units and four optional units of 7,500 DWT multi-purpose hybrid power vessels. The prices of these vessels will be finalised at the time of inking the official contract, the firm said in a communication to bourses. 

In September, Mazagon Dock Shipbuilders raised its revenue growth guidance for financial year 2024. The company gave a revenue growth target of 12-15 percent for the current financial year compared to the 10-12 percent growth guidance it gave earlier. 

In the June quarter, Mazagon Dock reported a 40% year-on-year rise in its consolidated net profit to Rs 314 crore from Rs 224.8 crore in the corresponding quarter of the last fiscal. Revenue from operations fell 2.6% year-on-year to Rs 2172.8 crore in Q1 from Rs 2230 crore during Q1FY23.   

About the company   

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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