Multibagger stock: Shares of Mazagon Dock Shipbuilders Ltd have gained over 14% since the defence firm announced a board meeting for considering stock split and interim dividend on October 22. The multibagger stock which closed at Rs 4240.35 on October 17 hit a high of Rs 4,850 in the current session, rising 14.37% during the period.
Half of those gains came in the current session with the Mazagon Dock stock rising 7.03% to Rs 4850 ahaed of the board meeting tomorrow.
The defence firm disclosed date and agenda of the board meeting after market hours on October 17. Market cap of the firm climbed to Rs 94,676 crore.
Total 3.12 lakh shares of the firm changed hands amounting to a turnover of Rs 147.95 crore.
The defence stock has gained 126% in a year and risen 633% in two years. The stock has climbed 1,580% in three years.
In terms of technicals, the relative strength index (RSI) of Mazagon Dock stands at 57.8, signaling it's trading neither in the overbought nor in the oversold zone. Mazagon Dock shares are trading higher than the 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
Commenting on the outlook of the stock, Progressive Shares has assigned a BUY call on the company at current market price of Rs 4526 or decline up to Rs 4430 with the closing stop loss of Rs 3800. It has fixed a price target of Rs 6221-Rs 7916 with a horizon of 9–12 months.
In a report dated October 21, the brokerage listed out rationale for its stance
A. The stock has given a breakout from a Flag and Pole Formation
B. +DMI stands well above –DMI and a reading of 28.46 in ADX indicates the presence of a strong trend
C. The price breakout was accompanied by a surge in Volume
D. On the daily chart, the stock has given a breakout from an Inverted Head and Shoulder formation
Choice Broking said if the stock can maintain levels above Rs 4,550, it could move higher, with price targets of Rs 5,400 and Rs 5,500.
The brokerage advised to fix stop loss at Rs 4,150 to manage downside risks.
Shiju Koothupalakkal - Technical Research Analyst, PL Capital- Prabhudas Lilladher said, "The RSI has indicated a positive trend reversal from the highly oversold zone to signal a buy and has much upside potential to carry on with the positive move further ahead. With the chart technically looking very attractive, one can buy the stock for an upside target of Rs 5100, keeping the stop loss of Rs 4000."
The company has fixed the “Record Date" of Wednesday, 30 October 2024 for the purpose of payment of Interim Dividend on Equity Shares for the Financial Year 2024-25, if declared by the Board.
Mazagon Dock Shipbuilders Ltd (MDSL) is a leading defence public sector undertaking shipyard under the Ministry of Defence (MoD). Mazagon Dock is primarily engaged in constructing and repairing warships and submarines for MoD and other types of vessels i.e. cargo ships, multipurpose support vessels, barges and border outposts, tugs, dredgers, water tankers, etc. for commercial clients.
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