Mazagon Dock Shipbuilders benefits by 2% on a $42-million contract with a client in Europe

18 Dec 2023 , 12:44 PM

Mazagon Dock Shipbuilders’ stock increased by 2.4% in early trading on December 18 on the company’s announcement that it had inked a $42-million deal with a client in Europe. The stock was trading at Rs 2,133.10 at 10 a.m.

Mazagon Dock Shipbuilders announced in a regulatory filing on December 15 that it had inked a $42-million agreement with a European client for the construction of individual shipbuilding contracts for the development of three 7,500 DWT multipurpose hybrid-powered vessel units. The contract has an estimated value of $42 million, per the document.

Natural gas firm ONGC placed an order for the Part Replacement of Pipeline Project (PRPP) worth Rs 1,145 crore with the shipyard on December 10. The project involves the installation of 19 segments, totaling roughly 44.4 km of underwater pipelines.

As of September 2023, the shipbuilding company had Rs 37,500 crore in its order book. Sanjeev Singhal, chairman and managing director of Mazagaon Dock Shipbuilders, stated during a Q2FY24 analyst call that the business anticipates a 12–15% increase in topline over FY2022-23. Singhal stated to CNBC-TV18 in November 2023 that they are also keeping an eye on the export industry and anticipate some encouraging changes in the next two months. ‘This gives us a solid foundation in the export market segment,’ he said.

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