Stock to buy: Mazagon Dock Shipbuilders is Anand Rathi’s pick of the month; here’s why

livemint.com:

Mazagon Dock Shipbuilders shares extended gains from a 4% rally in the previous session which was coupled with heavy volumes. Brokerage firm Anand Rathi has named Mazagon Dock Shipbuilders as its ‘Pick of the month’ and expected the stock to give a decent near 11% upside. Technical charts suggest that Mazagon Dock Shipbuilders stock has seen a breakout after a consolidation.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — April 24 “Most of the shipping stocks are already in a strong uptrend since quite some time. After a decent rally, Mazagon Dock Shipbuilders shares have been consolidating since the past few sessions. The stock confirmed a breakout from this consolidation and that resembles a bullish flag pattern," Anand Rathi said.

Thus, the brokerage firm advises traders to buy Mazagon Dock Shipbuilders shares in the range of ₹2,250 – 2,270 with a stop loss of ₹2,140 for an upside target of ₹2,500. Mazagon Dock Shipbuilders manufactures and repairs warships and submarines for the Indian Navy and various types of vessels and related engineering products. Also Read: Top Stock Recommendations: Sagar Doshi of Nuvama recommends these stocks to buy today Mazagon Dock Shipbuilders posted a consolidated net profit at ₹626.8 crore for the quarter ended December 2023.

The company’s revenue from operations in Q3FY24 was at ₹2,362.5 crore. At the operating level, EBITDA during the quarter jumped to ₹539 crore, while margins improved to 22.8%. Mazagon Dock share price has rallied over 20% in the past one month, while the stock has remained flat in 2024 so far.