Mazagon Dock shares rise over 4% on signing a $42-million deal for 3 hybrid vessels
Mazagon Dock Shipbuilders (MDL) has signed individual Shipbuilding Contracts with the European client for the construction of three units of 7,500 DWT Multi-Purpose Hybrid Powered Vessels on December 14, 2023, for a value of approximately $42 million," the company said in an exchange filing.
The nature of the order involves a comprehensive process of designing, building, and delivering these advanced vessels upon completion, Mazagon Dock said.
The first vessel delivery is scheduled for 27 months after the effectiveness of the contract.
At 10.37 am, the scrip was trading 3% higher at Rs 2,143.5 on BSE. On a year-to-date basis, the stock has delivered multibagger returns of 170%.
It has also rallied over 720% in the past two years and over 860% in the last three years.
In Q2 FY24, Mazagon Dock Shipbuilders posted 56% growth in its consolidated net profit at Rs 333 crore. The same stood at Rs 214 crore in the corresponding quarter of the previous year.
Its revenue from operations during the reporting period increased 7% year-on-year (YoY) to Rs 1,828 crore against Rs 1,702 crore a year ago.
EBITDA or operating profit jumped 50% YoY to Rs 177 crore in the quarter, while margins improved to 9.7%.
On a sequential basis, net profit rose 6% from Rs 314 crore clocked in the preceding June quarter. Revenue from operations, on the other hand, declined 16% quarter-on-quarter.
As per Trendlyne data, the average target price of the stock is Rs 1,787, a downside of 17% from the current market prices.
The consensus recommendation from two analysts for the stock is a 'Hold'.
Technically, the stock's day RSI (14) is at 56.2. The RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed.
