Stock Market Today: Multibagger Mazagon Dock Shipbuilders share price rose 14.5% to scale all time highs of ₹2794 on Friday, on the NSE, not before closing with gains of 12.18% on the NSE at ₹2737. The Mazagon Dock Shipbuilders share price having risen 250% in a year and 1529% in five years has given Multibagger returns to the investors.
The confidence on Defence Stocks remains high with rising capex and make India initiative along with rising export orders. All this has driven gains for Mazagon Dock Shipbuilders share price.
Strong Q4 expectations
Expectations remain high from Mazagon Dock Shipbuilders. Analysts at Antique Stock Broking expect 19% year on year growth in net profit to ₹378 Crore in Q4 with strong improvement in operating performance. The Earnings before Interest Tax Depreciation and Amortisation (Ebitda) is likely to grow 45% year-on year to ₹304.4 even though revenue may remain flat.
Mazagon Dock Shipbuilders remains among 4 top picks of Antique Stock Broking in the Defence sector
Strong order Book
The Order backlog of about 40,000 crore which translates to 5 time trailing twelve months revenues for Mazagon Dock Shipbuilder could imply earnings to grow at CAGR of 20% over FY23-26. expect analysts at Anand Rathi Research.
Also Read- ICICI Securities is bullish on these 2 Tata Group stocks, sees up to 27% upside
Mazagon Dock Shipbuilder is well placed in the defence shipyards industry in terms of getting large scale contracts of warships in future from Indian Navy
Large scale orders of next generation destroyers (expected value 50,000 crore) and next phase of conventional submarines (expected value 43,000 crore) – gives comfort in terms of future order inflows, said analysts at Anand Rathi Research.
Tech Edge pick of Anand Rathi
Mazagon Dock Shipbuilder is a Top Edge pick of Anand Rathi with target price of ₹3400 indicating 24% upside from current levels of Mazagon Dock Shipbuilder share price at ₹2737. They have given a time frame of 6-9 months and stop loss at ₹2200.
As per Anand Rathi Research, since past 3 – 4 quarters the Mazagon Dock Shipbuilder share price was consolidating in a rectangle band of 1800 – 2500. Finally, there is breakout from this range and that too with exceptional volumes.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions
\
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!
Download The Mint News App to get Daily Market Updates.
Published: 17 May 2024, 05:12 PM IST
