Mazagon Dock rises 3% on ₹310 cr defence order

Shares of Mazagon Dock Shipbuilders rose as much as 3.52% to hit an intraday high of ₹2,230.60, a day after the warship and submarine manufacturer won an order worth ₹310 crore from the ministry of defence.

"This is to inform that Mazagon Dock Shipbuilders Limited has signed a contract with the acquisition wing of the Ministry of Defence for the Construction and Delivery of One Training Ship for the Indian Coast Guard (ICG) at a cost of ₹310 crore on 17 October 2023," the company says in a regulatory filing.

During the session on Wednesday, the scrip opened higher at ₹2,180, as against the closing price of the previous session at ₹2,154.65. At the time of reporting, the share price of the warship and submarine manufacturer was trading 0.22% lower at ₹2,150. At present, the share price of the company is trading 13.4% lower than the 52-week high of ₹2,483, which the company touched on September 8 this year. Shares of the company are currently trading 250.8% higher than the 52-week low of ₹612.80, which the company touched on March 27 this year. During the session, the company’s market capitalisation stood at ₹43,402.68 crore with more than 1.22 lakh shares exchanging hands as against the two-week average of 0.54 lakh shares. In the past three months, six months and one year, shares of the company have given 23.61%, 199.85% and 247.43% in return, respectively, as per the data available on the BSE.

Earlier this month, the company signed a letter of intent with a European client for the Construction of six firms and four optional units of 7500 DWT Multi-Purpose Hybrid Power Vessels. The prices for which would be firmed up at the time of the Signing of the Contract, says the company. 

Last month, the warships and submarines manufacturer signed the Master Ship Repair Agreement (MSRA) with the U.S. government represented by NAVSUP Fleet Logistics Center (FLC) Yokosuka. 

In June this year, the company signed an agreement with German shipbuilder ThyssenKrupp Marine Systems (TKMS) to jointly bid for P-75I, which envisaged the construction of six advanced submarines in India at a cost of over ₹45,000 crore.

Domestic brokerage ICICI Securities in a latest report said that Mazagon Dock is in a race to win a submarine tender of the Indian Navy. "After South Korea’s Hanwha Ocean withdrew from the race, a strong two-way contest is in the offing for INR 430bn worth of P75I submarine programme. The stakes are high for both Mazagon Dockyard Shipbuilders (MDSL) partnering with Germany’s TKMS and L&T partnering with Spain's Navantia as L1 bidder is likely to get all the six submarines," ICICI Securities said in a report released on September 5.

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