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

1. Ship Construction- 85.2 %
2. Sale of base & depot spares- 9.6 %
3. 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.
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