PSU defence stock: Mazagon Dock Shipbuilders shares climb 4% on FY24 turnover data

Shares of Mazagon Dock Shipbuilders Ltd climbed 4 per cent in Monday's trade after the PSU firm said its provisional turnover for FY24 stood at Rs 9,400 crore. This was against Rs 7,827.18 crore in FY23. Following the development, Mazagon Dock Shipbuilders shares climbed 4.06 per cent to hit a high of Rs 2,289.90 on BSE. 

In a brief filing to stock exchanges, Mazagon Dock Shipbuilders said: "In terms of Regulation 30 and other applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015, we wish to inform that Mazagon Dock Shipbuilders Limited (MDL) recorded a turnover of Rs. 9400.00 Crore approx. (provisional and unaudited) for the financial year ended on 31 March 2024 (corresponding figure for the previous year was Rs. 7827.18 Crore)."

Mazagon Dock Shipbuilders shares, which have rallied 226 per cent in the last one year, has traded flattish in 2024 so far.

Mazagon Dock Shipbuilders has grown from a single-unit, modest ship repair firm to a multi-unit, multi-product corporation, making it one of India's top shipbuilding yards, Nirmal Bang said in a recent note. It was one of the first shipyards in India to produce corvettes (Veer & Khukri Class) and is the only shipyard in the country to have constructed destroyers and conventional submarines for the Indian Navy, it added. 

"Robust order book position of over 5 times the revenue with management’s greater emphasis on domestic sales, we expect a
revenue/EBITDA/PAT CAGR of 25 per cent/21 per cent/14 per cent in FY24E-26E. Given this strong order book and revenue visibility and healthy balance sheet, we assign a higher multiple at 28 times which is above the average one-year P/E. We initiate a 'BUY' with a target of Rs 2,786, valuing it at 28 times March 2026 EPS," the domestic brokerage said.

The government last month gave the ex-post facto approval for extension of additional charge of the post of CMD, MDL, assigned to Sanjeev Singhal, Director (Finance), for a period of six months with effect from February 1 or till the regular incumbent joins the post, or until further orders, whichever is the earliest. This was in continuation with the MOD’s letter dated January 31.