Mazagon Dock shares jumps 10% ahead of dividend record date; Check all details here

Shares of Mazagon Dock Shipbuilders surged as much as 10 per cent during the trading session on Tuesday ahead of the record date for its dividend for the financial year 2024-25. The company board had considered and approved the interim dividend for its shareholders earlier this month.

The company has also fixed Wednesday, April 16, 2025 as 'record date' for the second interim dividend, it said. It means that investors holding the shares of Mazagon Dock shall be considered eligible for the payment of dividend by the company. "The payment of the same shall be completed on or before May 07, 2025," it added.

In an exchange filing on April 8, 2025, Mazagon Dock said that the board of directors of the company in its meeting had approved the declaration of a second interim dividend of Rs 3 per equity share, or 60 per cent, of Rs. 5 each fully paid-up for the financial year 2024-25.

Shares of Mazagon Dock Shipbuilders surged more than 9.6 per cent to Rs 2665.85 on Tuesday, commanding a total market capitalization of Rs 1.10 lakh crore. The state-run defence player had settled at Rs 2,432.35 on Friday. The stock has gained nearly 15 per cent in the last one month.

In another exchange filing with the bourses on April 8, 2025, Mazagon Dock said that its board also considered and approved the appointment of Ruchir Agrawal, Director (Finance) as Chief Financial Officer (CFO). The company also announced a provisional turnover of Rs 10,775.34 crores for the financial year ended on March 31, 2025 in a separate exchange filing.

Revenue, EBITDA, and PAT Growth CAGR during FY25E-FY27E stand at 26 per cent, 31 per cent, and 25 per cent respectively. Margins are not expected to drop because the existing order book is being executed on a nomination basis, which has better margins. Other expenses and provisions have increased due to provisions for excess inventory from ships with expired warranties, said Nirmal Bang Institutional Equities.

"The components are still in good shape and may be used in future projects, provisions will be reversed upon utilization. It has projected a 12-15 per cent PBT margin over three years given the current rate of execution, significant booking revenue, and a healthy order pipeline. We believe the firm will likely exceed its expectations," it added with a 'buy' rating and a target price of Rs 2,801.

The management anticipates order inflows on P-75, P-75(I), NGC, and next-generation destroyers in the coming 12-18 months, apart from the Rs 1,990 crore order received from the Ministry of defense on the air independent propulsion Plug, said Geojit Financial Services. However, the outstanding order book fell by 9 per cent YoY to Rs 34,787 crore due to relatively lower inflows."

“Currently, the stock trades at a 61 per cent premium to its 5 year average. Considering this expensive valuation coupled with its likely moderation in earnings growth, we assign a ‘sell’ rating on the stock with a target price of Rs 2,318, based on 24.5 times FY27E adjusted EPS,” it added. Another brokerage Antique Stock Broking has a 'buy' rating with a target price of Rs 2,757.