Mazagon Dock zooms 3,200% in four years, here’s why

Multibagger shipbuilder: State-run shipbuilder Mazagon dock has surged as much as 19 per cent to hit a record high of Rs 5,580, supported by heavy trading volumes. As many as 12.61 lakh shares changed hands on the BSE compared to an average of 3.89 lakh shares traded daily in the past two weeks. Meanwhile, the stock has handsomely rewarded its investors since its listing in 2020. 

The share of the Mumbai-based shipbuilder has surged a whopping 3,200 per cent from its listing of Rs 216.25 to Rs 5,580 in a matter of only four years. 

The stock has been a beneficiary of the government’s policies to make India a defence hub and export defence equipment to the world. The government plans to to export over Rs 50,000 crore worth of defence equipment by 2028-2029, as per a statement by Defence Minister Rajnath Singh, after taking oath for his second term in the office. 

In the last quarter of the previous fiscal, the company had reported a revenue growth of 50 per cent compared to the same quarter in FY 23 while doubling its the net profit to Rs 663 crore. 

Analysts are bullish on the stocks stating that the broader industry factors align the with company’s growth. The company has considered three major potential orders it might secure in the medium term: an order for six submarines under the P-75I program, an extension of the P75 order for three additional submarines, and an order for next-generation destroyers.

Amid this substantial price rise, the market capitalisation of the company surged to 1,13,420.37 crore. As of 03:24 pm on July 4, the shares of the company were trading 20 per cent or 937.25 points up at Rs 5623.50 apiece.