Mazagon Dock Shipbuilders secures Rs 1,990 crore order from Defence Ministry. Details here

Mazagon Dock Shipbuilders Ltd on Monday bagged an order worth Rs 1,990 crore from the government to construct an air-independent propulsion (AIP) plug for submarines. "Ministry of Defence has signed two contracts, worth Rs 2,867 crore, for the construction of Air Independent Propulsion (AIP) Plug for DRDO-AIP system & its integration onboard Indian Submarines, and the integration of Electronic Heavy Weight Torpedo (EHWT) onboard the Kalvari-Class submarines. Both the contracts were signed in the presence of Defence Secretary Shri Rajesh Kumar Singh in New Delhi on December 30, 2024. The contract for construction of AIP Plug and its integration was inked with Mazagon Dock Shipbuilders Limited, Mumbai worth around Rs 1,990 crore," it stated in a release.

The ministry has signed another contract with France-based Naval Group. "The contract for integration of EHWT, being developed by DRDO, was signed with Naval Group, France at an approx. cost of Rs 877 crore," it added.

The AIP technology is being indigenously developed by DRDO (Defence Research and Development Organisation). "The project pertaining to construction of AIP-Plug and its integration will enhance the endurance of conventional submarines and significantly contribute towards the 'Aatmanirbhar Bharat' (self-reliant India) initiative. It would generate employment of nearly three lakh man days. The integration of EHWT will be a collaborative effort by Indian Navy, DRDO and Naval Group, France. It would greatly augment the firepower capabilities of Kalvari Class submarines of the Indian Navy," the release further stated.

On the stock-specific front, Mazagon Dock settled 1.84 per cent lower at Rs 2,266.25 today. At this price, it has rallied 98.46 per cent in calendar year 2024 which is drawing to a close. Last Friday (December 27), the counter turned ex-stock split in a 2:1 ratio.

The scrip traded lower than the 5-day, 10-, 20-day and 30-day simple moving averages (SMAs) but higher than the 50-day, 100-, 150-day and 200-day SMAs. The stock's 14-day relative strength index (RSI) came at 44.80. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the stock has a price-to-equity (P/E) ratio of 18.46 against a price-to-book (P/B) value of 6.97. Earnings per share (EPS) stood at 122.74 with a return on equity (RoE) of 37.77.

Around 69,000 shares changed hands on BSE today. The figure was lower than the two-week average volume of 1.86 lakh shares. Turnover on the counter stood at Rs 15.65 crore, commanding a market capitalisation (m-cap) of Rs 91,415.99 crore.

Mazagon Dock Shipbuilders is among the leading shipbuilding yards in India. It offers services to the Indian Navy and Coast Guard. As of September 2024, the government held an 84.83 per cent stake in the defence PSU.