Shares of Mazagon Dock Shipbuilders surged 17% to a record high in the afternoon session today. The multibagger defence stock climbed 17.70% to a high of Rs 3989 against the previous close of Rs 3389.05 on BSE. Total 5.55 lakh shares of the firm changed hands amounting to a turnover of Rs 205 crore. Market cap of Mazagon Dock rose to Rs 77,197 crore on BSE.
Mazagon Dock share price has risen 272% in a year and gained 103% in three months. The multibagger stock zoomed 68% in 2024 and gained 1415% in two years.
Mazagon Dock shares have a one-year beta of 1.1, indicating high volatility during the period. In terms of technicals, the relative strength index (RSI) of Mazagon Dock stands at 64.7, signaling it's trading neither in the overbought nor in the oversold zone. Mazagon Dock shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day and higher than the 100 day, 150 day and 200 day moving averages.
Kushal Gandhi, Technical Analyst, StoxBox has assigned a price target of Rs 4560 on the stock.
"Following a bullish breakout from a volatility contraction pattern, the price action surged nearly 40%. As a means of profit-taking bouts, the stock retraced to retest the breakout zone and witnessed a sharp technical pullback from the 50 daily MA. With this, the price action has staged a bullish breakout from a mini-rounding bottom, indicating a trend continuation. The stock displays high EPS, price, sectorial strength, and buyer demand. We recommend buying Mazagon Dock for the target of 4560 with a protective stop at Rs 3209," said Gandhi.
Shiju Koothupalakkal - Technical Research Analyst at Prabhudas Lilladher sees the stock crossing Rs 4,000 mark in the near term.
"With all the defence pack gathering strength, Mazagon Dock has also witnessed a significant spurt in the last 2 sessions to indicate a breakout above the previous peak zone of Rs 3478 levels and has entered a new territory with strong bias maintained. With the RSI once again getting into a strong zone after cooling off from the highly overbought zone, further upside potential is visible with next higher targets anticipated at Rs 3720 and Rs 4040 levels in the coming days with currently Rs 3300 maintained as the support zone, " said Koothupalakkal.
Jigar S Patel from Anand Rathi said,"Support will be at Rs 3480 and resistance at Rs 3535. A decisive close above the Rs 3535 level may trigger a further upside to Rs 3650. The expected trading range will be between Rs 3400 and Rs 3700 for a month."
Riyank Arora, Technical Analyst at Mehta Equities said, "The stock has given a strong breakout above its important resistance level of Rs 3478.00 on its daily time frame charts and is managing to hold well above this level. With the calculated price targets being near Rs 3750 and Rs 4000 as per the technical structure, it is expected that the bullish momentum should continue. The RSI (14) on daily charts, around 68.42, is showing strong momentum as well. A strict stop-loss should, however, be kept at the 3350 mark to manage risk well on this trade for Mazagon Dock."
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.