Mazagon Dock Share Price Extends Gains for 5th Session; PE Below Industry Average

Mazagon Dock Shipbuilders Limited (MDL) is one of India’s premier defence shipyards, operating under the Ministry of Defence. Known as the ‘Ship & Submarine Builders to the Nation,’ the company specialises in constructing, repairing, and refurbishing warships and submarines at its facilities in Mumbai and Nhava.

MDL plays a crucial role in India’s naval defence capabilities, serving as the lead shipyard for major surface combatants such as destroyers and frigates. It is also the only Indian shipyard with two independent submarine assembly and launch lines, making it a strategic asset for the Indian Navy. The company has been a pioneer in manufacturing Veer & Khukri Class Corvettes and remains the sole shipyard in India capable of producing both destroyers and conventional submarines.

Share Price Performance and Recent Surge

Mazagon Dock Shipbuilders’ share price has witnessed a sharp rally of 17.5% from its low on February 19,  2025. The stock has continued its upward momentum, extending gains for the 5th consecutive session as of March 6, 2025. At 10:53 AM, the stock was trading at ₹2,250, reflecting a modest 0.33% increase on the day.

Q3 FY25 Financial Performance

Mazagon Dock Shipbuilders delivered a robust performance in the third quarter of the financial year 2024-25 (FY25), driven by revenue growth and improved operational efficiency. Key financial highlights include:

• Net Profit: ₹768.22 crore, marking a 30% increase from ₹591.54 crore in Q3 FY24.
• Revenue from Operations: ₹3,143.62 crore, up 33% year-on-year (YoY) from ₹2,362.47 crore.
• EBITDA: ₹1,104 crore, reflecting a 36.63% growth from ₹808 crore YoY.

Order Book and Valuation

MDL has a robust order book of ₹34,787 crore as of December 31, 2024, reinforcing its strong revenue visibility and growth potential.

From a valuation perspective, the stock is currently trading at a Price-to-Earnings (PE) ratio of 33x, significantly lower than the industry PE of 40.5x. 

Conclusion

Mazagon Dock Shipbuilders continues to strengthen its position as a critical player in India’s defence sector, supported by steady order inflows and operational efficiency. Its recent price surge aligns with strong quarterly results and favourable market sentiment. With a lower-than-average industry PE, the stock remains an interesting subject for market participants tracking the defence sector.

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