Multibagger defence stock in focus today as net profit halves in Q4

Shares of Mazagon Dock Shipbuilders are in focus today after the defence firm released its results for the January-March quarter of fiscal 2024-25 (Q4FY25). Mazagon Dock shares rose 2.34% or Rs 85.55 to Rs 3749 in the previous session. Market cap of the firm rose to Rs 1.51 lakh crore on BSE. A total of Rs 2.99 lakh shares of the firm changed hands amounting to a turnover of Rs 111.18 crore. The defence stock has gained 123.29 in a year and risen 868% in two years and climbed 2497% in three years.

The company reported a significant 51% decline in net profit, which fell to Rs 325.3 crore from Rs 663 crore during the same period last year.

Despite the drop in profit, the Mumbai-based defence public sector undertaking (PSU) saw a 2.3% increase in consolidated revenue from operations, reaching Rs 3,174.4 crore compared to Rs 3,103.7 crore a year ago.

Operationally, the earnings before interest, taxes, depreciation, and amortization (EBITDA) for the defence PSU plummeted by 83% in the March quarter of FY25, amounting to Rs 90 crore, down from Rs 524 crore in the previous year.

In terms of shareholder returns, the Board of Directors has proposed a final dividend of Rs 2.71 per equity share of Rs 5 each for the 2024-25 fiscal year. Should this be approved, it will be paid within 30 days following its declaration at the Annual General Meeting (AGM) for the financial year ending March 31, 2025, with the specific date to be announced.

“The Board of Directors, in its meeting on May 29, 2025, recommended the final dividend of Rs 2.71 per equity share, pending shareholder approval. This follows the first interim dividend of Rs 11.595 (initially paid at Rs 23.19 per share based on the face value of Rs 10, adjusted to Rs 5 per share after the split-off) and the second interim dividend of ?3.00 per share already distributed for the year,” stated Mazagon Dock Shipbuilders in a regulatory filing to the stock exchanges.

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.