Indian benchmark indices extended rally for the fourth straight session on Monday, with the BSE Sensex and Nifty50 hitting their respective fresh 52-week highs, supported by rally in oil and gas and PSU stocks. In the PSU space, Mazagon Dock Shipbuilders topped the chart by rising over 7% and hit a fresh all-time high on the BSE after the company bagged a contract from the defence ministry.

The state-owned company has signed a contract worth ₹2,725 with the Ministry of Defence for restoring INS Shankush, a submarine of the sub-surface killer (SSK) class. The delivery of the medium refit cum life certification (MRLC) of the second Shishumar class submarine is set for 2026.

Mazagon Dock shares opened 2.65% higher at ₹1,280 against the previous closing price of ₹1,246.85 on the BSE. During the session, the largecap stock rallied 7.5% intraday to hit a new high of ₹1,341, on the back of strong volume. As many as 3.9 lakh shares changed hands over the counter as compared to two-week average volume of 2.73 lakh stocks.

Mazagon Dock has delivered strong returns of 455% in the last one year, rising from its 52-week low of ₹241.60 touched on July 1, 2023. In the calendar year 2023, the counter has gained 67%, while it has climbed 33% in a month. In the past one week, the multibagger stock has added nearly 8%.

The PSU stock has seen surge in buying activities after stellar financial performance in the March quarter. In Q4FY23, the company’s net profit more than doubled to ₹326 crore in Q4FY23 as against ₹159 crore in the same quarter of last year. The revenue from operations stood at ₹2,078.6 crore, up 49% against ₹1,396.4 crore in the year-ago period.

On the operating front, earnings before interest, tax, depreciation and amortisation (EBITDA) jumped nearly three-fold to ₹211 crore versus ₹77 crore in the year-ago period. EBITDA margins doubled to 10.1% versus 5.5% in the corresponding quarter of last year.

For the full financial year FY23, the net profit jumped 82% to ₹1,119 crore as against ₹611 crore in FY22, while the revenue grew by 37% YoY. At the end of March 2023 quarter, the company had an order book of ₹38,755 crore, which was spread mainly over two critical projects - P15B Destroyers worth ₹15,814 crore and P17A stealth frigates worth ₹18,501 crore.

The board of directors of the company also recommended a final dividend of ₹6.86 per equity share. This was in addition to an interim dividend of ₹9.10 per equity share paid for the year. At the current share price, the dividend yield stands at 0.82%.

(DISCLAIMER: The views and opinions expressed by investment experts on are either their own or of their organisations, but not necessarily that of and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)

Follow us on Facebook, X, YouTube, Instagram and WhatsApp to never miss an update from Fortune India. To buy a copy, visit Amazon.