Mazagon Dock stock price rises by 27% in 2 days

29 Aug 2022 , 11:57 AM

In intraday trading on Monday, shares of Mazagon Dock Shipbuilders Limited (MDL) rose 12.5% on the BSE and reached a record high of Rs397.95 thanks to significant volume. Over the previous two trading days, the stock has increased by 27%.

When compared to the S&P BSE Sensex, which fell 1.4% at 10:49 am, MDL traded 13% higher at Rs396. A combined 7.9 million equity shares, or 4% of MDL’s total equity, changed hands on the NSE and BSE, more than double the usual trading activity for the counter, according to statistics. The only shipyard in India that produces destroyers and submarines is MDL, one of the country’s four key defense shipyards. It is a Ministry of Defence (MoD) -affiliated Defense Public Sector Undertaking (DPSU).

With a maximum shipbuilding and submarine capacity of 40,000 DWT, the business builds and repairs warships and submarines for the MoD for use by the Indian Navy and Indian Coast Guard, as well as boats for commercial clients (deadweight tonnage). It is the only shipyard in India that has produced conventional submarines and destroyers for the Indian Navy.

MDL primarily uses two departments to do business: shipbuilding and heavy engineering for submarines. Naval ship construction and maintenance are included in the shipbuilding division, whilst diesel-electric submarine construction, repair, and refit are included in the submarine and heavy engineering division.

MDL, on the other hand, has outperformed the market over the previous month, rising 40% after the business announced robust earnings and a solid order book position. The S&P BSE Sensex, in contrast, increased 0.7% over the same time period.

The company’s order book for FY23 is valued at Rs43,343 crore and consists mostly of six Scorpene submarines, of which four have already been delivered, four 17 Alpha Stealth Frigates, and four 15 Bravo missile-guided destroyers. Likewise, one destroyer has already been delivered, and the second will follow either at the end of this month or in the middle of the next month, according to MDL’s Q1FY23 earnings conference call.

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