Mazagon Dock shares gain in early trade on Q2 earnings, interim dividend

Shares of Mazagon Dock Shipbuilders Ltd gained over 4% in early deals today post announcement of Q2 earnings and interim dividend. Mazagon Dock stock is a multibagger with 166% gain in six months and 158% returns this year. Mazagon Dock Shipbuilders stock rose 4.42% to Rs 2068.85 in early deals today against the previous close of Rs 1981.10 on BSE. Total 0.55 lakh shares of the firm changed hands amounting to a turnover of Rs 11.24 crore. Market cap of Mazagon Dock rose to Rs 41,033 crore on BSE. The stock hit a 52 week high of Rs 2,483 on September 8, 2023 and fell to a 52 week low of Rs 612.80 on March 27, 2023.

Mazagon Dock shares have a one-year beta of 2, indicating very high volatility during the period. In terms of technicals, the relative strength index (RSI) of Mazagon Dock stands at 46.9, signaling it's trading neither in the overbought nor in the oversold zone. Mazagon Dock stock stands higher than the 5 day, 10 day, 20 day, 100 day, 150 day, 200 day but lower than the 30 day and 50 day moving averages. In the last session, Mazagon Dock stock ended flat at Rs 1981.10 against the previous close of Rs 1971.80 on BSE.

The defence firm’s consolidated net profit rose 56% to Rs 333 crore in Q2 against Rs 214 crore in the corresponding quarter of the previous year. Revenue from operations in the September quarter gained 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 on a quarter on quarter basis. 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.

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The board of the defence firm also approved an interim dividend of Rs 15.34 per share for the financial year 2023-24.

The payout for interim dividend is Rs 309 crore, which will be given out of the profits of the company in FY24. The record date for determining the eligibility of shareholders for interim dividend has been fixed as November 20 and the same would be paid on or before December 7.

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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