Mazagon Dock shares lose steam in a month; buy, sell or hold?

Shares of Mazagon Dock Shipbuilders have lost steam in the last one month. The multibagger defence stock, which rose  426% in two years and 2560% in three years has lost 6% in June. Despite the short-term correction, Mazagon Dock Shipbuilders shares have gained 71.16% from their 52-week low. The defence stock hit a 52 week low of Rs 1917 on February 19, 2025 and scaled a 52 week high of Rs 3778 on May 29, 2025. 

In the current session, the stock rose 3% to Rs 3341.25 on BSE. Mazagon Dock's market cap stood at Rs 1.32 lakh crore on BSE. 

Total 1.17 lakh shares of the firm changed hands amounting to a turnover of Rs 38.34 crore. 

In terms of technicals, the relative strength index (RSI) of Mazagon Dock stands at 49.5, signaling it's trading neither in the overbought nor in the oversold zone. Mazagon Dock shares are trading lower than the 20 day, 30 day but higher than the 5 day, 10 day, 50 day, 100 day, 150 day and 200 day moving averages.

Jigar S Patel, Technical Research Analyst at Anand Rathi Shares & Stock Brokers has a buy call on the stock with a target Price of Rs 3,600. Stop loss can be fixed at Rs 3,150. 

"Recently, Mazagon Dock has formed a strong base in the Rs 3,300–3,400 zone, which also coincides with the S3 Camarilla pivot level on the hourly chart. Additionally, a bullish divergence is visible on momentum indicators, reinforcing the possibility of an upward move. This confluence of technical signals suggests a potential trend reversal or a strong bounce from current levels. Based on this setup, we recommend initiating long positions in the Rs 3,360–3,330 range. The stock may head towards an upside target of 3600 in the near term. To manage risk, a stop-loss should be placed at Rs 3,150 on a daily closing basis. Traders are advised to follow position sizing and maintain discipline around stop levels," said Patel. 

Gaurav Bissa, VP, InCred Equities said, "Mazagon Dock witnessed a strong upside in the last few months. However, it has witnessed strong profit booking in line with other defense stocks. It is showing early signs of double bottom formation on daily charts which makes buying at current levels worthwhile for Rs 3700 levels keeping the stop loss at Rs 3080."

Antique Stock Broking has a buy call on the stock with unchanged price target of Rs 3858. It is positive on the defence firm's acquisition of a 51 per cent stake in Sri Lanka’s largest and most established shipyard Colombo Dockyard. 

The brokerage said the CDPLC is the first port of call after crossing the Suez Canal and is strategically located, making it ideal for ship repair activities—an area in which Mazagon Dock can look to participate.
     
"We maintain a positive view on Mazdock supported by its strong order pipeline and proposed government incentives for shipbuilding, which serve as key near-term catalysts for the stock. We maintain BUY rating on the stock with an unchanged target of Rs 3,858 (at 50x FY27 core PAT)," Antique Stock Broking said. 

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.