The shares of the main defence firm plummeted by as much as 7 p.c after the Authorities of India is about to promote as much as a 4.83 p.c stake within the firm by way of an offer-for-sale (OFS) on April 4 and April 7.
Worth motion
With a market capitalization of Rs 1.03 lakh crore, the shares of Mazagon Dock Shipbuilders Ltd have been buying and selling at Rs 2,553.60 per share, lowering round 6.65 p.c as in comparison with the earlier closing worth of Rs 2,735.45 apiece.
Cause for Rise
The shares of Mazagon Dock Shipbuilders Ltd have seen a bearish motion after the Authorities of India is about to promote as much as a 4.83 p.c stake within the firm by way of an offer-for-sale (OFS) on April 4 and April 7. The OFS features a base difficulty dimension of two.83 p.c and a greenshoe possibility of two p.c. The ground worth for the provide might be Rs 2,525 per share.
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Monetary Efficiency
Mazagon Dock Shipbuilders Restricted (MDL) delivered sturdy Q3 FY25 outcomes with present margins at 20–21 p.c, pushed by legacy orders. Nonetheless, administration expects sustainable margins to normalize to 12–15% on the PBT degree, aligning with broader trade requirements going ahead.
Order E book and Future Orders
As of December 31, 2024, the corporate holds an order ebook value ₹34,787 crore. It anticipates orders for 3 P-75 submarines by March 2025. With MDL as the only real technically certified bidder for P-75(I), business discussions are anticipated to start quickly for FY26 placement.
Capex Plans
The corporate has outlined a Rs 5,000 crore CAPEX plan over the following 4–5 years, together with growth of adjoining land with a graving dry dock and growth of the Nhava Yard. For FY25–26, the preliminary funding is projected at roughly Rs 500 crore.
Firm Overview
Mazagon Dock Shipbuilders Restricted is engaged in constructing and repairing of ships, submarines, varied forms of vessels, and associated engineering merchandise. The Firm is into the development of warships and submarines. It’s also engaged within the manufacturing of protection gear.
Written by Abhishek Singh
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