Mazagon Dock stock stuck in bear grip after hitting record high, can it recover?

Shares of Mazagon Dock Shipbuilders have plunged 35% from their record high reached in May end this year. The defence stock hit a record high of Rs 3778 on May 29, 2025. Stuck in bear grip, the Mazagon Dock stock is oversold on charts with a RSI of 29.6 in the current session. This implies there are more sellers than buyers and sentiment is bearish for the defence sector stock.  

However, brokerage Nirmal Bang is bullish on the battered stock with a price target of Rs 3,500.  The stock slipped 0.24% to Rs 2452.80 in the current session. Mazagon Dock's market cap stood at Rs 99,039 crore on BSE. 

Total 0.37 lakh shares of the firm changed hands amounting to a turnover of Rs 9.13 crore. Mazagon Dock shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

The multibagger defence stock, which rose  135% in two years and 468% in three years has lost 23% in six months. The defence stock hit a 52 week low of Rs 1917 on February 19, 2025. 

Brokerage Nirmal Bang in its report said the company's management expects that it will close FY27  with an order book exceeding Rs1 lakh crore, primarily driven by  substantial submarine orders. 

"The stock is currently  trading at a 1-year forward P/E of 37.5x  above the 3-year average. We retain a  BUY on the stock and value it at 45x  Sep-27E (+2 SD above the mean), thus arriving at a target price of Rs 3,515," said Nirmal Bang. 

Laxmikant Shukla, Senior Technical Analyst at YES Securities said, "On the weekly timeframe, Mazagon Dock  is showing bearish signals, indicating a downtrend. The stock is currently positioned for a breakdown below its horizontal support line. For sellers to establish firm control, it needs to decisively fall below the Rs 2,580 level. This bearish outlook is reinforced by the price trading below its key SMAs, signaling underlying weakness. Furthermore, the MACD indicator supports this negative sentiment as its line has moved into negative territory, confirming increased selling interest.  This bearish trend is expected to continue as long as stock remains below the Rs 2,730-2,740 resistance zone."

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.