Mazagon Dock Shipbuilders
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Mazagon Dock Shipbuilders is navigating a pivotal transition from a focus on naval shipbuilding to a broader commercial shipbuilding role, as highlighted by recent management commentary and strategic initiatives. The company's optimism is bolstered by government support for domestic shipbuilding and significant capacity expansions in Maharashtra and Andhra Pradesh. However, the decline in the order book raises concerns about future revenue generation, necessitating close monitoring of execution risks associated with these ambitious plans. Vista's financial outlook reflects moderating revenue growth and stable margins, aligning with the company's current valuation, which is deemed fair. The shipbuilding industry is experiencing a sunrise phase, driven by government investments and emerging demand for advanced vessels, yet competitive pricing pressures and potential supply chain disruptions pose challenges. Over the next 12-24 months, key opportunities include the successful commissioning of the Dighi shipbuilding cluster and the potential for new defense contracts, while headwinds may arise from execution risks and fluctuating demand dynamics
Why We Like This Stock
- Government investments in shipbuilding infrastructure are expected to enhance production capabilities
- The Dighi shipbuilding cluster represents a significant capacity expansion opportunity
- Management's focus on operational efficiency and digital transformation supports long-term sustainability
Things To Watch Out For
- A declining order book raises concerns about future revenue generation
- Execution risks associated with large-scale projects could impact timelines and costs
- Competitive pricing pressures may constrain profit margins in the near term
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 9,467 | 11,432 | 13,009 | 12,954 | 14,007 |
| Profit Before Tax (Cr.) | 2,424 | 3,061 | 3,237 | 3,077 | 3,374 |
| PBT Margin | 25.6% | 26.8% | 24.9% | 23.8% | 24.1% |
| Net Profit (Cr.) | 1,788 | 2,334 | 2,441 | 2,177 | 2,387 |
| Earnings Per Share | 44.3 | 57.9 | 60.5 | 54.0 | 59.2 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| HSBC | ▼ Sell | 1,860 | 16-Sep-2026 |
| HDFC Securities | ► Add | 2,625 | 30-Jul-2026 |
| Kotak Securities | ▼ Sell | 1,950 | 08-Jul-2026 |
Company Overview
Show Company Profile
Mazagon Dock Shipbuilders Limited engages in the building and repairing of ships, submarines, vessels, and related engineering products in India and internationally. The company operates in two segments, Shipbuilding, and Submarine and Heavy Engineering. The company offers cargo ships, passenger ships, supply vessels, multipurpose support vessels, water tankers, tugs, dredgers, fishing trawlers, barges, and border outposts. It also provides services, including repairs and refit, designing of ships, know how provider, training, tug support, supply chain management, and self-propeller modular transporter. In addition, it offers offshore patrol vessels, fast patrol vessels, and floating boarder outposts. Further, the company provides AI products, including remotely operated vehicles, AI-enabled phased array ultrasonic testing, and AI-enabled computerized radiography. The company was formerly known as Mazagon Dock Limited and changed its name to Mazagon Dock Shipbuilders Limited in May 2015. Mazagon Dock Shipbuilders Limited was founded in 1774 and is based in Mumbai, India.