Mazagon Dock m-cap tops Rs 1 lakh crore
market capitalisation of state-owned Mazagon Dock Shipbuilders crossed ₹1 lakh crore Thursday after the stock surged to a lifetime high of ₹5,623.50 on the BSE. Shares of two other shipbuilding companies Cochin Shipyard and Garden Reach Shipbuilders & Engineers also rallied 10% and 8.65%, respectively.
Analysts attributed the rally to inflows from new defence-specific mutual funds and expectations of increased focus on the sector during the forthcoming budget.
The shares closed at ₹5,600.8, after an advance of 19.52% at close, and the full market-cap was at ₹1,12,962.54 crore at close on Thursday. Shares of Mazagon Dock Shipbuilders were listed at ₹216.25 in October 2020 and have rallied 25 times since then.
«The March 2024 quarter earnings of shipbuilding defence companies have remained good, and they have been bagging new orders this year,» said Apurva Sheth, head of research at Samco Securities. «The capital outlay mentioned in the interim budget in the defence sector has also given positive expectations and is expected to continue in the upcoming budget announcement.»
According to Sneha Poddar, an analyst at Motilal Oswal Financial Services suggests investors 'Hold' their investments in these companies and avoid entering at these expensive valuations.
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