Buy Mazagon Dock Shipbuilders; target of Rs 560: ICICI Direct

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26 Aug, 2025 12:21

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Mazagon Dock Shipbuilders (MDL) is engaged in the construction and repair of warships and submarines for the Ministry of Defence (MoD) to be used by the Indian Navy along with other vessels for commercial clients. MDL is India’s only shipyard to have built destroyers and conventional submarines for the Indian Navy • The company has an order backlog of Rs 43,343 crore as of August 2022 (6.4x TTM revenues), of which Rs 19,795 crore of backlog is in Project-17A (Nilgiri class frigates), Rs 18,897 crore in Project-15B (Visakhapatnam class Destroyers), Rs 4,400 crore in Project-75 (Kalvari class submarines) • Over the last 10 years, MDL’s revenue increased at 10.5% CAGR over FY13- 22 while EBITDA and PAT increased 3.6% and 3.9% CAGR, respectively, during the same period due to a fall in operating margins.

We initiate coverage under the Stock Tales format with a BUY rating. We value MDL at Rs 560 i.e. 14x FY24E EPS.

At 16:01 hrs Mazagon Dock Shipbuilders was quoting at Rs 431.60, up Rs 13.45, or 3.22 percent.

It has touched an intraday high of Rs 457.50 and an intraday low of Rs 418.55.

It was trading with volumes of 363,998 shares, compared to its thirty day average of 134,574 shares, an increase of 170.48 percent.

In the previous trading session, the share closed down 0.56 percent or Rs 2.35 at Rs 418.15.

The share touched its 52-week high Rs 437.80 and 52-week low Rs 224.00 on 08 September, 2022 and 24 February, 2022, respectively.

Currently, it is trading 1.42 percent below its 52-week high and 92.68 percent above its 52-week low.

Market capitalisation stands at Rs 8,704.94 crore.

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