Mazagon Dock, Cochin Shipyard report weak Q2 earnings; fresh price targets and more 

Mazagon Dock Shipbuilders and Cochin Shipyard shareholders are in a fix after the shipbuilding majors reported a weak set of earnings for the September 2026 quarter. Mazagon Dock declared its earnings on October 27. The stock closed at Rs 1879 on October 26. After the the earnings were announced, the defence stock slumped 10% on an intra day basis due to a sharp miss in the EBITDA and profit levels.

In the current session, the stock ended 1% lower at Rs 1890. Market cap of the firm fell to Rs 76,238 crore.

The company's net profit fell over 54% year on year and 37% on a quarter on quarter basis to Rs 344 crore. The year-on-year decline was the sharpest since its profit fell 51% on year in the March quarter of 2024-25 (Apr-Mar).

Revenue from operations fell over 16% on year and nearly 17% on quarter to Rs 2446 crore in Q2. Revenue fell in Q2 after rising for 12 straight quarters. Total income was down nearly 16% year-on-year to Rs 2697 crore. It declined nearly 17% from the June quarter.

Brokerage firm SMIFS is bullish on the prospects of the Mazagon Dock stock with a target price of Rs 2,905.

"From a valuation perspective, its execution record, specialised capabilities and substantial entry barriers support a premium to less differentiated shipbuilders. Sustaining this premium will depend on timely order conversion, disciplined capital allocation and delivery execution. Overall, improving contract visibility and profitable utilisation of expanded facilities could support earnings growth and strengthen the investment case over the medium to long term," said SMIFS.

Ashika Stock Broking has a target price of Rs 1982 with a hold call on the Mazagon stock.  Anand Rathi also has a hold call with a target of Rs 1956. However, Kotak Securities has a sell call with a target of Rs 1660.

Cochin Shipyard

In the current session, the stock ended 1.46% lower at Rs 1178.50. Market cap of the firm fell to Rs 31,004 crore.

The firm reported a weak set of earnings on November 10 this year. The stock tanked 8% to Rs 1186.75 on November 11.

Cochin Shipyard logged a 50 percent fall in consolidated net profit at Rs 54 crore in Q2 compared with Rs 108 crore in the year-ago period. Sequentially, the company's net profit declined by more than 64 percent from the June quarter.

However, revenue from operations rose nearly 12 percent to Rs 1,249 crore in Q2 from Rs 1,118.6 crore in the corresponding period of the previous fiscal.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) declined 30.7 percent YoY to Rs 51 crore from Rs 73.6 crore a year ago. EBITDA margin also shrinked to 4.1 percent in the September quarter from 6.6 percent in the year-ago period.

Choice Broking assigned a price target of Rs 1565 on the stock with a buy call.  The brokerage cited strong medium-term growth prospects and a more attractive valuation post recent correction in the stock.

Kotak Securities assigned a sell call to the stock with a target of Rs 800. Antique Broking has sell call on the stock with a target of Rs 1407 against Rs 1,671, citing weak execution and elevated valuations. ICICIDirect has a hold call on the stock with a target of Rs 1590.