Shares of Mazagon Dock Shipbuilders turned ex-dividend for a final dividend of Rs 12.11 on Thursday. The defence firm in May 2024 announced a final dividend of more than 120 per cent or Rs 12.11 on each stock of Rs 10 face value. Later, the company fixed September 19 as the record date for determining the eligibility of shareholders to whom the final dividend for FY2024 will be paid. However, the dividend is subject to the approval by members at the AGM. The AGM of the company will be held on September 26.
In the current session, the multibagger stock slipped 5.02% to Rs 3967.20 with the market cap of the firm at Rs 81,567 crore.
Total 0.37 lakh shares of the firm changed hands amounting to a turnover of Rs 15.13 crore. Mazagon Dock shares have a one-year beta of 1.4, indicating very high volatility during the period.
The stock has risen 116% in six months and gained 781% in two years.
In terms of technicals, the relative strength index (RSI) of Mazagon Dock stands at 39.4, signaling it's trading neither in the overbought nor in the oversold zone. Mazagon Dock shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day but higher than 150 day and 200 day moving averages.
Laxmikant Shukla, Technical Research Analyst at YES Securities is bullish on the stock. Resistance of the stock lies at Rs 5,330 and support is seen at Rs 4,300.
“Mazagon Dock has recently demonstrated a descending trendline breakout after consolidation and is currently trading comfortably above 100 and 20 SMA on the daily chart. Daily RSI has given a bullish crossover on the daily chart reinforcing the given breakout. The overall trend appears to be upward and minor upcoming fluctuations are likely to provide a favorable environment for buyers. We recommend Buying Mazdock on dip around Rs 4,700-4,730, keeping a stop loss of Rs 4,300 for a potential target of Rs 5,330,” said Shukla.
Gaurav Bissa, VP, InCred Equities advised traders to buy around Rs 4120 levels for 10-15 percent upside.
"Mazagon Dock had a brilliant run since 2022. However, it has witnessed a decent correction from a 2-year rising channel resistance on the weekly charts. It has fallen about 30 percent from top and currently trading below the median line of the channel suggesting the short term view remains challenging. It may see some stability on account of the price being near its 89 EMA on the daily charts along with RSI near support zone. Investors are advised to hold their positions whereas long term investment is advised on a move below Rs 4000 levels," said Bissa.
Jigar S Patel from Anand Rathi sees support for the stock at Rs 4,040 and resistance at Rs 4,500. “A decisive close above the Rs 4500 level may trigger a further upside to Rs 4700. The expected trading range will be between Rs 4000 and Rs 4700 for the short-term,” said Patel.