Mazagon Dock shares rise 6% as defence ministry accepts bid for P75 submarine project

Shares of Mazagon Dock Shipbuilders Ltd rose 6% today after the defence firm clarified that the commercial bid submitted by Mazagon has been opened by the Ministry of Defence (MoD) for further processing. 

"The bid is with respect to three additional submarines of Scorpene class under the Project 75. As earlier informed, commercial negotiations with respect to the project are in process," said the firm in a communication to bourses.

Earlier, reports said that L&T’s bid for India’s Rs 70,000 crore P75(I) submarine project was disqualified. Now Mazagon Dock is the sole qualifying contender, added reports. 

The multibagger defence stock climbed 5.78% to Rs 2423.40 in the current session against the previous close of Rs 2289. Total 3.12 lakh shares of the firm changed hands amounting to a turnover of Rs 73.45 crore. 

The defence stock has gained 103% in a year and risen 503% in two years. 

In terms of technicals, the relative strength index (RSI) of Mazagon Dock stands at 50.6, 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, 100 day, 150 day and 200 day moving averages.

Market cap of the firm climbed to Rs 94,060 crore. 

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.