Mazagon Dock Shipbuilders stock: In less than four years, a defence industry stock has returned a staggering 2,828%, shooting up from its initial public offering (IPO) price of Rs 145 to its most recent all-time high of Rs 4,245.
The stock Mazagon Dock Shipbuilders is being examined. In 1934, it was established as a Private Limited Company. Following the government’s takeover in 1960, Mazagon Dock expanded quickly to become India’s top shipbuilding yard, building offshore structures for the Bombay High and warships for the Navy.
Price of Mazagon Dock’s IPO Listing
Mazagon Dock Shipbuilders made its D-Street debut on October 12, 2020, at Rs 216.25, at a near 50% premium to its IPO price of Rs 145.
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The Mazagon Dock IPO was a book-built issue of Rs 443.69 crore. The issue was entirely an offer for the sale of 3.06 crore shares. The minimum lot size for an application was 103 shares and the minimum amount of investment required by retail investors was Rs 14,935.
Mazagon Dock Share Price History: From Rs 145 to Rs 4,245
From the IPO price, the defence stock journeyed to its all-time high of Rs 4,245 on NSE, made on June 19, in just a matter of four years. However, the stock has retreated over 8 per cent to close at Rs 3894.2 apiece on Friday, June 21.
If an investor had applied for 1 lot of Mazagon Dock Shipbuilders’ shares, his/her investment would now have turned Rs 4.01 lakh, as of June 21’s closing price.
According to ETNow News, Mazagon Dock Shipbuilders commands a market cap of Rs 78,544.14 crore, as of June 21. Its shares have a 52-week range of Rs 1,162–4,245 on the NSE. The defense stock is a constituent of the BSE 500 index.
Why is Mazagon Dock Share Rising?
Mazagon Dock’s shares have sailed along a heavy tide in the overall defence sector, which has come from Defense Minister Rajnath Singh’s agenda to boost defence exports in the coming years. Upon beginning his second term in the Defence Ministry, Singh set an ambitious target of exporting over Rs 50,000 crore worth of defence equipment by 2028-2029.
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He also reiterated the government’s commitment to achieving self-reliance in defence manufacturing and modernising the armed forces, which paves a strong growth path for defence companies.
As a result, investors have been eagerly buying shares of defence companies, driven by the government’s continued push for defence indigenization and the opening of new export opportunities.
Mazagon Dock Q4 Results 2024
Mazagon Dock Shipbuilders reported a consolidated net profit of Rs 663 crore for the quarter ended March 31, 2024, which is a 103% increase from the Rs 326 crore reported in the same quarter last year. Sequentially, the profit after tax (PAT) increased by 5.7%.
The consolidated revenue from operations for the reported quarter was Rs 3,104 crore, up from Rs 2,079 crore in the same period last year, showing a year-on-year growth of 49.3%. Compared to the previous quarter (Q3FY24), the consolidated revenue rose by 31% from Rs 2,362 crore.
