Heavy buying witnessed in this shipbuilding stock which gained over 900% in three years; do you hold it?

Shares of Mazagon Dock Shipbuilders Limited gained over 2.30% today. The stock has witnessed heavy buying activity from investors. The company has announced impressive quarterly results. In the last six months, the stock has gained about 160%.

Today, the stock opened at Rs 2,010.05, with a high and low of Rs 2,068.85 and Rs 2,010.05, respectively. The stock is currently trading at Rs 2,028, which increased by 2.37%. The stock has a 52-week high of Rs 2,483 and a 52-week low of Rs 612.80. The company has a ROCE of 38.2% and an ROE of 28.6%, with a market capitalization of Rs 41,004 crore.

Mazagon Dock Shipbuilders Limited has delivered multi-fold returns to its shareholders in the last three years. During this period, the company’s share price surged from Rs 188.25 on November 14, 2020, to Rs 2,031.40 on November 09, 2023, representing an increase of over 900% in a three-year holding period. An investment of Rs 1 lakh in this company’s shares one year ago would have grown to Rs 10 lakh today.

Mazagon Dock Shipbuilders Limited reported a strong second quarter for FY24, with net sales growth of 7.36% to Rs 1827.70 crore, compared to Rs 1702.36 crore in the same quarter last year. The operating profit also experienced a significant increase of 52.14%. The net profit for the quarter stood at Rs 303.87 crore, which was Rs 55.83 crore in the previous year’s same quarter.

Mazagon Dock Shipbuilders’ business divisions in which the company operates are (i) shipbuilding and (ii) submarine and heavy engineering. Its shipbuilding division includes the building and repair of naval ships. It is currently building four P-15 B destroyers and four P-17A stealth frigates and undertaking the repair and refit of a ship for the MoD for use by the Indian Navy.

Its submarine and heavy engineering division includes building, repairing and refits of diesel-electric submarines. It is currently building/ in the process of delivering four Scorpene class submarines under a transfer of technology agreement with Naval Group as well as one medium refit and life certification of a submarine for the MoD for use by the Indian Navy.

The stock has shown impressive growth, and investors should keep a close eye on this stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.