Mazagon Dock Shipbuilders shares experienced a robust 6% surge, reaching a record high in early trading on Tuesday. The stock peaked at Rs 2,490, marking a noteworthy 216.90% rise over the past year. As of 11:06 am, it was trading at Rs 2,402.95, reflecting a 2.34% increase. The market capitalization of Mazagon Dock on the Bombay Stock Exchange reached Rs 49,293 crore with this record surge.
HDFC Securities, a brokerage firm, has set a target price of Rs 2,525 for Mazagon Dock. The recommendation is to buy in the Rs 2,100-2,142 range and consider additional purchases on dips to Rs 1,900-1,934. The base case fair value is suggested to be Rs 2,338, with a bull case fair value of Rs 2,525 over the next two to three quarters.
According to Vaibhav Kaushik, a Research Analyst at GCL Broking, Mazagon Dock is positioned for significant movements after consolidating for the last 4 to 5 months. He advises buying near Rs 2,270 with a stop loss of Rs 2,190, targeting Rs 2,500 to 2,600.
Technical indicators for Mazagon Dock indicate positive trends, with a one-year beta of 0.1, signifying low volatility. The relative strength index (RSI) is at 65.7, indicating balanced trading. Moreover, the stock is trading above various moving averages, including the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day averages.
In the second quarter, the company reported a substantial 56% increase in consolidated net profit at Rs 333 crore. It also declared an interim dividend of Rs 15.34 per share for the financial year 2023-24. Revenue from operations saw a 7% YoY increase to Rs 1,828 crore, and EBITDA surged 50% YoY to Rs 177 crore. Despite a 16% QoQ decline in revenue, Profit Before Tax (PBT) in the September quarter rose 53% YoY to Rs 407 crore.
