Mazagon Dock received a contract worth Rs 1,486 crore from ONGC.

Mazagaon, Mumbai, is home to Mazagon Dock Shipbuilders Limited, formerly known as Mazagon Dock Limited, a shipbuilding establishment. For the Indian Navy and offshore oil drilling, it builds warships, submarines, offshore platforms, and related support vessels.

One of India’s top shipbuilding companies is Mazagon Dock Shipbuilders Limited (MDL), which was founded in 1774 and is headquartered in Mumbai. Since 1960, the company has launched 801 ships, including a wide range of warships, submarines, cargo and passenger ships, and offshore platforms. MDL is an expert in the defense industry, having built 802 ships to date. This comprises seven submarines and twenty-eight warships, including sophisticated destroyers and missile boats. In addition, the company’s portfolio comprises merchant ships, oil sector equipment like offshore platforms and jack-up rigs, and naval platforms like destroyers, frigates, and missile boats. To focus on indigenization, MDL established a dedicated “Make in India” department equipped with a system that can simultaneously operate ten warships and eleven submarines. The company dedicates about 75% of its content to building warships, using local materials to drastically reduce costs.

With a specialized yard for building submarines located at the East Yard, the company runs multiple shipbuilding facilities: the North Yard, South Yard, Nhava Yard, and Anik Yard. Overlooking the North Yard, the Alcock Yard, and other land next to the South Yard house a number of construction sites, such as modular shipbuilding workshops, submarine cradle workshops, a Goliath Crane, and a Wet Basin.

Mazagon Dock Shipbuilders got a contract from ONGC:

The Pipeline Replacement Project 8 Group A (PRP 8 Group A) contract was awarded to Mazagon Dock Shipbuilders on an EPC reimbursable basis (OBE) at a maximum price of Rs 1486 crore, including all taxes and duties (GST at 12%). The company received notice of this award from ONGC on September 5, 2024, according to an exchange filing.

According to the order details, Pipeline Replacement Project 8 Group A (PRP 8 Group A) will be Mazagon Dock Shipbuilders’ responsibility for EPC reimbursement on an OBE basis.

Mazagon Dock Shipbuilders Ltd. stock price:

Mazagon Dock Shipbuilders Ltd. stock is running right now at a price of Rs. 4,323 per share. In the intraday segment, the stock is down nearly 2%, but later on at the end of the day will see a rise in the stock as per the recent contract with ONGC. In the first trading session, the stock traded at Rs. 4,544.00 per share, which is more than 3% up. The market capitalization of Mazagon Dock Shipbuilders is Rs 88,664 crore, according to the Bombay Stock Exchange (BSE). The company falls under the BSE500 category. 

Conclusion: ONGC has given Mazagon Dock Shipbuilders Ltd. a contract, which will increase the company’s sales and stock price.

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.