Multibagger Navratna firm in news today as net profit surges 121% in Q1

Shares of Navratna PSU defence company Mazagon Dock Shipbuilders are in news today after it reported a 121% rise in net profit for the quarter ended June 2024. Consolidated net profit climbed to Rs 696 crore on higher income against a  net profit of Rs 314 crore in the year-ago period.

Total income rose 10 per cent to Rs 2,628 crore crore in Q1 from Rs 2,405.42 crore in the corresponding period of the previous year. Revenue from operations in Q1 stood at Rs 2,357 crore against Rs 2,172.76 crore in the first quarter of the previous financial year.

Profit before tax and exceptional items stood at Rs 888.79 crore in the last quarter against Rs 383.32 crore on a year-on-year basis.

Earnings per share climbed to Rs 34.51 in Q1 against Rs 15.59 in the corresponding quarter of the previous fiscal.

EBITDA climbed 273.5% to Rs 642 crore in the June 2024 quarter against Rs 172 crore in the June 2023 quarter. EBITDA margins rose to 27.3% in Q1 against 7.9% on a year-on-year basis.

The stock ended over 3 per cent higher at Rs 4,984 on the National Stock Exchange (NSE) on Wednesday. 

The stock closed 3.40% higher at Rs 4997.10 on BSE.

Mazagon Dock shares have a one-year beta of 1.4, indicating very high volatility during the period. In terms of technicals, the relative strength index (RSI) of Mazagon Dock stands at 48.5, signaling it's trading neither in the overbought nor in the oversold zone.

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.