Mazagon Dock Shipbuilders Ltd; 32x returns in 5 years; Why not to invest now ?
Company Snapshots
- Mazagon Dock Shipbuilders Ltd is a prominent shipbuilding company in India.
- It primarily manufactures for the defence sector and has built 802 vessels including 28 warships.
- The company manufactures Naval Platforms including Frigates, Destroyers, Missile Boats etc
- The company has an Infrastructure with a Capacity of 11 Submarines & 10 War Ships concurrently.
- As of Q3FY24, the order book stands at ~Rs. 38,390 crs.
Revenue Breakup
Following is the Revenue Breakup
- Ship Construction- 85.2 %
- Sale of base & depot spares- 9.6 %
- Others- 5.1 %
Fundamental Analysis
Key Ratios
| Market Cap | ₹ 1,12,858 Cr. |
| Current Price | ₹ 5,596 |
| High/Low | ₹ 5,860 / 1,302 |
| Stock PE | 58.2 |
| Industry PE | 44.2 |
| ROCE | 44.1 % |
| ROE | 35.2 % |
| PEG Ratio | 1.98 |
| Debt To Equity | 0.00 |
Financial Trend
Revenue: 5 Year Comparison
- 2020: 4,905
- 2024: 9,467
- 5 Year Percentage change: 93.02 %
Net Profit: 5 Year Comparison
- 2020: 471
- 2024: 1,937
- 5 Year Percentage change: 311.02 %
Shareholding Pattern
Change in Shareholding Pattern
| Mar-23 | Mar-24 | 1 Year Change | |
| Promoters | 84.83% | 84.83% | 0.00% |
| FIIs | 3.29% | 2.38% | -0.91% |
| DIIs | 0.30% | 0.66% | 0.36% |
| Public | 11.57% | 12.12% | 0.55% |
Stock Price Returns
1 Year Stock Returns
- Mazagon Dock Shipbuilders Ltd. has given 1 Year returns of 292.90 %
- 1 Lakh invested in July 2023 would have become 3.92 Lakhs in July 2024
5 Year Stock Returns
32x returns in 5 years
- Mazagon Dock Shipbuilders Ltd. has given 1 Year returns of 3206.66 %
- 1 Lakh invested in July 2020 would have become 33.06 Lakhs in July 2024
Company Valuation
- Current PE- 58.2
- Median PE- 10.3
- Company is Overvalued: As the Median PE is less than the Current PE, so we can say that company is company is highly overvalued.
- Currently Company’s valuation is trading at 6 times higher than its median valuation of 5 years.
- Current Modi Government is focusing on the defence sector, this is the reason all the defence sector companies are trading at a higher valuation.
Why not to invest now ?
- Mazagon Dock Shipbuilders Ltd. is highly overvalued as it is trading at 6 times its median valuation so investing at this point will not make any sense
- Company has really strong fundamentals & the strong Revenue & Net Profit Growth over the last 5 years.
- Currently there is bubble in the defence sector so all the defence sector companies are trading at a higher valuation.
- Do not consider investing in this company if you are looking to book small term profit
Check Out this- DCX Systems: Best Defence Sector stock invest in 2024
Disclaimer
- Money Minded School is not a SEBI registered investment advisor, Please do your own research before investing
- This article is a complete guide about Mazagon Dock Shipbuilders Ltd.
- These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
- Also, We have talked in detail about the share’s future prospects and growth potential.
- Hopefully, this information will help you in your further investment.
- If you have any further queries, please comment below. We will be happy to answer all your questions.
- If you like this information, share the article with as many people as possible
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