Multibagger stock Mazagon Dock Shipbuilders secures 1070 crores new order

About the Contract 

Mazagon Dock Shipbuilders Limited a prominent shipyard company in India has recently entered into a significant contract with the acquisition wing of the Ministry of Defence for the construction and delivery of fourteen Fast Patrol Vessels (FPVs) for the Indian Coast Guard (ICG). The contract was signed on January 24 2024 and is valued at approximately Rs 1070 crores.

The nature of the order involves the design, construction, and delivery of the vessels, and it falls within the domestic category as it is awarded by the Ministry of Defence, Government of India. The period for the execution of the contract spans from the date of release of advance payment by the Buyer to the Seller, with the first vessel delivery expected within 24 months and subsequent vessels at intervals of three months. As of June 30, 2023, the total order book of the Mazagon Dock Shipbuilders stands at Rs 39,117 crore.

Stock Performance

In the last trading session, the stock closed at Rs 2,289.30. Today, it opened at Rs 2,280 and closed at Rs 2,325.35, up by 1.57%. The company’s 52-week high stands at Rs 2490, while its 52-week low stands at Rs 612.80. Currently, the company boasts a market capitalisation of approximately Rs 46,900 crore. Looking back over the past year, the company’s shares have yielded multibagger returns of 206.19%, in the same time frame BSE Industrials has changed by 69.51%.

About the company

Mazagon Dock Shipbuilders, a government-owned shipyard under India’s Ministry of Defence, specialises in constructing and repairing warships, submarines, and commercial vessels. Recognized as a “Mini-ratna-I” in 2006, it’s the sole Indian shipyard to produce destroyers and conventional submarines. With a 40,000 DWT capacity, it crafts naval vessels for the Indian Navy, including frigates and Scorpene class submarines, playing a key role in indigenous Corvette production.

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