Mazagon Dock shares in news as firm wins Rs 1,600-crore contract from defence ministry; check details

Shares of Mazagon Dock Shipbuilders Ltd are in news today as the shipbuilding company has inked a contract worth Rs 1,600 crore with the acquisition wing of the Ministry of Defence for the construction and delivery of six next-generation offshore patrol vessels (NGOPVs) for the Indian Coast Guard (ICG).

mazdock-share-price-366149">Mazagon Dock stock ended 4.44% lower at Rs 2046.25 on Wednesday against the previous close of Rs 2141.40 on BSE. Total 1.63 lakh shares of the firm changed hands amounting to a turnover of Rs 34.04 crore. Market cap of Mazagon Dock fell to Rs 41,270.82 crore on BSE.

Mazagon Dock shares have a one-year beta of 0.1 , indicating very low volatility during the period.

In terms of technicals, the relative strength index (RSI) of Mazagon Dock stands at 49.2, signaling it's trading neither in the overbought nor in the oversold zone. Mazagon Dock stock stands higher than the 30 day, 50 day, 100 day, 150 day and 200 day but lower than the 5 day, 10 day, 20 day moving averages.

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"This is to inform that Mazagon Dock Shipbuilders Limited (MDL) has signed a contract with the Acquisition wing of the Ministry of Defence for the Construction and Delivery of six (06) Next generation Offshore Patrol Vessels (NGOPVs) for Indian Coast Guard (ICG) on 20 Dec 2023," the firm said in a stock exchange filing.

The contract mentions the design, construction, and delivery of the vessels, with the first vessel set to be delivered within 41 months from the date of advance payment release. Subsequent vessels will follow at intervals of five months.

The defence firm reported a 56% rise in consolidated net profit at Rs 333 crore in Q2 against Rs 214 crore in the corresponding quarter of the previous year. The board also approved an interim dividend of Rs 15.34 per share for the financial year 2023-24.

Revenue from operations in Q2 rose 7% year-on-year to Rs 1,828 crore against Rs 1702 crore a year ago. EBITDA or operating profit climbed 50% year-on-year to Rs 177 crore in the quarter. Net profit rose 6% from Rs 314 crore in the June quarter. Revenue from operations declined 16% quarter-on-quarter. Profit before tax (PBT) in the September quarter rose 53% year-on-year to Rs 407 crore against Rs 261 crore in the corresponding quarter of last year.

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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