Mazagon Dock Shipbuilders Ltd, with a market capitalization of Rs. 93,479 crores, zero debt-to-equity ratio and return on equity of 35.2%, demonstrates industry leadership through advanced naval shipbuilding capabilities and strong order book. Strategic defence partnerships enhance growth.
Table of Contents
Overview Of the Shipbuilding Sector Sector
The shipbuilding sector is experiencing significant growth driven by naval modernization programs, maritime security requirements and commercial vessel demand. Government initiatives support indigenous shipbuilding capabilities development through technology transfer and infrastructure investments.
Rising material costs and technological advancement requirements present challenges while creating opportunities in specialized vessel construction, maintenance services and maritime infrastructure development. Focus on self-reliance drives innovation.
Financial Analysis of Mazagon Dock Shipbuilders Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales | 9,467 | 7,827 | 5,733 |
| Expenses | 8,055 | 7,029 | 5,299 |
| Operating Profit | 1,412 | 798 | 435 |
| OPM % | 13 | 9 | 7 |
| Other Income | 1,101 | 687 | 396 |
| EBITDA | 2,513 | 1,485 | 845 |
| Interest | 5 | 6 | 7 |
| Depreciation | 83 | 76 | 75 |
| Profit Before Tax | 2,425 | 1,403 | 749 |
| Tax % | 25.4 | 25.42 | 24.85 |
| Net Profit | 1,937 | 1,119 | 611 |
| EPS | 96.04 | 55.48 | 30.29 |
| Dividend Payout % | 28.58 | 28.77 | 28.82 |
* Consolidated Figures in Rs. Crores
Mazagon Dock Shipbuilders Ltd Company Metrics
Mazagon Dock Shipbuilders Ltd showcased robust financial performance in FY 24, with sales of ₹9,467 crores, net profit of ₹1,937 crores and total assets of ₹29,449 crores. Key metrics reflect improved profitability and operational efficiency compared to FY 23.
Sales Growth: Sales increased from ₹7,827 crores in FY 23 to ₹9,467 crores in FY 24, marking a growth of 20.93%. This highlights the strong demand for the company’s naval and defence shipbuilding services.
Expense Trends: Expenses rose from ₹7,029 crores in FY 23 to ₹8,055 crores in FY 24, a 14.6% increase. Controlled expense growth compared to revenue demonstrates improved operational efficiency.
Operating Profit & Margins: Operating profit surged to ₹1,412 crores in FY 24, up from ₹797.80 crores in FY 23, reflecting a 76.93% increase. OPM improved significantly to 13.36% from 9.37%, showcasing better cost management.
Profitability Indicators: Net profit grew by 73.12%, rising from ₹1,119 crores in FY 23 to ₹1,937 crores in FY 24. EPS increased from ₹55.48 to ₹96.04, indicating stronger returns for shareholders.
Taxation & Dividend: The tax rate remained stable at 25.40% in FY 24 compared to 25.42% in FY 23. Dividend payout was consistent, slightly decreasing to 28.58% in FY 24 from 28.77% in FY 23.
Key Financial Metrics: Reserves rose to ₹6,042 crores in FY 24, up from ₹4,559 crores in FY 23. Current liabilities decreased to ₹22,634 crores, reflecting better short-term debt management, while contingent liabilities increased to ₹37,338 crores.
Mazagon Dock Stock Performance
Mazagon Dock Shipbuilders Ltd delivered remarkable returns, achieving a 1-year ROI of 200% and a 3-year ROI of 156%. These figures highlight the company’s consistent growth and robust value creation over short- and medium-term investment horizons.
| Period | Return on Investment (%) |
| 1 Year | 200 |
| 3 Years | 156 |
Mazagon Dock Shareholding Pattern
Mazagon Dock Shipbuilders Ltd shareholding pattern for Sept-24 shows stable promoter holdings at 84.83%, a decline in FII to 1.45%, an increase in DII to 1% and retail participation rising to 12.71%, reflecting dynamic investor activity.
| All values in % | Sep-24 | Jun-24 | Mar-24 |
| Promoters | 84.83 | 84.83 | 84.83 |
| FII | 1.45 | 2.44 | 2.38 |
| DII | 1 | 0.83 | 0.66 |
| Retail & others | 12.71 | 11.89 | 12.12 |
Mazagon Dock Partnerships and Acquisitions
Mazagon Dock has established strategic partnerships with global defence contractors and technology providers for advanced warship construction. Their collaborations focus on technology transfer, indigenous capability development and modernization of shipbuilding facilities. Naval expertise drives excellence.
Recent collaborations strengthen their position in submarine construction and specialized vessel manufacturing. These partnerships enhance technological capabilities while fostering the indigenous development of critical naval systems and components. Innovation supports growth.
Strategic alignments with research institutions and defence technology firms expand capabilities. These relationships facilitate knowledge transfer and skill development in advanced shipbuilding techniques and naval systems integration. Excellence drives success.
Mazagon Dock Peer comparison
Mazagon Dock Shipbuilders Ltd, with a market cap of ₹93,479.28 crores and a P/E of 36.36, leads in ROE at 35.19%. It outperforms peers like Cochin Shipyard (₹40,489.45 crores, ROE 17.21%) and Garden Reach Shipbuilders (₹19,426 crores, ROE 22.21%).
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % | CP Rs. |
| Mazagon Dock | 2317.4 | 93479.28 | 36.36 | 35.19 | 63.73 | 103.2 | 44.19 | 0.59 | 2317.4 |
| Cochin Shipyard | 1539.05 | 40489.45 | 45.67 | 17.21 | 33.7 | 127.34 | 21.62 | 0.63 | 1539.05 |
| Zen Technologies | 2,404 | 21,708 | 107 | 33.01 | 24 | 203 | 45.97 | 0.04 | 2404.25 |
| Garden Reach Sh. | 1,696 | 19,426 | 50 | 22.21 | 33.59 | 94.19 | 27.37 | 0.55 | 1695.8 |
| Taneja Aerospace | 417.15 | 1063.75 | 85 | 9.27 | 4.95 | 19.19 | 13.26 | 0.96 | 417.15 |
Future of Mazagon Dock
Mazagon Dock is strategically positioned to capitalize on India’s naval expansion and modernization programs. Their focus includes developing advanced warship-building capabilities, submarine construction expertise and indigenous technology development. Strategic vision drives growth.
The company plans significant infrastructure upgrades and technology investments to enhance production capabilities. Emphasis on skill development and manufacturing efficiency supports increased order execution and timely delivery targets. Innovation ensures success.
Their roadmap emphasizes self-reliance in naval technology and increased export potential. The focus remains on advanced warship construction while expanding repair and maintenance services globally. Market leadership strengthens position.
How To Invest In Mazagon Dock Share?
To invest in Mazagon Dock Shipbuilders shares, open a demat and trading account with a broker like Alice Blue. Complete KYC, research Mazagon Dock’s performance and place a buy order during market hours, specifying the quantity and price, ensuring a seamless investment process.
Ensure your demat account is active and adequately funded. Evaluate Mazagon Dock’s financials, order book and industry trends. Use fundamental or technical analysis to assess market performance, ensuring your investment aligns with short- and long-term goals for informed decision-making.
After purchasing shares, monitor your portfolio regularly. Stay updated with Mazagon Dock’s quarterly results, business developments and market trends. This proactive approach helps maximize returns, mitigate risks and adjust holdings according to evolving conditions and company performance.
Mazagon Dock Shipbuilders – FAQs
Mazagon Dock Shipbuilders maintains a market capitalization of Rs. 93,479 crores, reflecting its dominant position in naval shipbuilding. Strong order book and execution capabilities drive valuation growth. Market confidence remains high.
Mazagon Dock leads India’s naval shipbuilding sector with advanced warship construction capabilities and submarine-building expertise. Their comprehensive infrastructure and skilled workforce establish unmatched industry leadership. Excellence drives success.
Mazagon Dock focuses on strategic partnerships rather than direct acquisitions, emphasizing technology collaboration and capability enhancement. Their approach strengthens indigenous shipbuilding capabilities through knowledge transfer. Growth remains organic.
Mazagon Dock specializes in constructing advanced warships, submarines and commercial vessels. They provide comprehensive shipbuilding services, including design, construction, testing and maintenance of naval and commercial vessels. Excellence defines operations.
Mazagon Dock Shipbuilders Ltd operates as a public sector enterprise under the Ministry of Defence, Government of India. Professional management ensures operational excellence while maintaining strategic defence priorities.
The Government of India maintains majority ownership, with public shareholders, institutional investors and mutual funds holding the remaining stakes. Strong governance ensures strategic alignment with national interests.
Mazagon Dock operates in the defence shipbuilding industry, specializing in warship construction, submarine building and commercial vessel manufacturing. Strategic importance drives continuous technological advancement.
Mazagon Dock demonstrates robust order book growth through naval vessel contracts, submarine construction projects and commercial shipbuilding orders. Strong defence modernization programs drive sustained demand.
Investors can purchase Mazagon Dock shares through registered brokers or online trading platforms after opening a demat and trading account with alice blue. Regular investment through SIPs offers growth potential.
Current market metrics, strong order book and industry leadership position indicate a balanced valuation. Robust fundamentals and strategic importance in the defence sector support market value.
Mazagon Dock’s future looks promising with strong naval modernization programs, growing export potential and enhanced technological capabilities. Strategic importance ensures sustained growth opportunities. Innovation drives success.
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Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
