Shares of Mazagon Dock Shipbuilders Ltd are in news today after the firm said on Monday that it signed a letter of intent (LoI) with a European client. The LoI outlines plans for the construction of six firm units and four optional units of 7,500 DWT multi-purpose hybrid power vessels. The prices of these vessels will be finalised at the time of inking the official contract, the firm said in a communication to bourses.
In the previous session, the stock closed 3.56% lower at Rs 2073.70 on BSE. The stock slipped 4.01% to an intraday low of Rs 2064 on Monday. Total 0.35 lakh shares of the firm changed hands amounting to a turnover of Rs 7.30 crore. Market cap of Mazagon Dock fell to Rs 41,824 crore on BSE. Mazagon Dock shares have a one-year beta of 1.9, indicating very high volatility during the period.
Mazagon Dock reported a 40% year-on-year rise in its consolidated net profit to Rs 314 crore in the June quarter from Rs 224.8 crore in the corresponding quarter of the last fiscal. Revenue from operations fell 2.6% year-on-year to Rs 2172.8 crore in Q1 from Rs 2230 crore during Q1FY23.
In terms of technicals, the relative strength index (RSI) of Mazagon Dock stands at 48, signaling it's trading neither in the overbought nor in the oversold zone. Mazagon Dock stock stands lower than the 5 day, 10 day, 20 day, 30 day but higher than the 50 day, 100 day, 150 day and 200 day moving averages.
In September, Mazagon Dock Shipbuilders raised its revenue growth guidance for financial year 2024. The company gave a revenue growth target of 12-15 percent for the current financial year compared to the 10-12 percent growth guidance it gave earlier.
About the company
Mazagon Dock Shipbuilders Ltd (MDS) is a shipbuilding and offshore fabrication yard. The company's major activities include shipbuilding, ship repairs and fabrication of offshore structures. It provides warships, merchant ships, submarines, support vessels, offshore platforms, passenger cum cargo vessels, trawlers, main and helidecks and barges.
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