ICICI Securities research report on Mazagon Dock Shipbuilders
Mazagon Dock Shipbuilders (MDL) has reported robust Q1FY25 performance. Key points: 1) EBITDA margin increased to highest level of 27.2% (16.9% in Q4FY24) aided by lower provisions and deliveries of ships earlier than expected. 2) It won contract worth INR 46.8bn from ONGC and an export contract for construction of three multi-purpose hybrid powered vessels (order value: USD 43mn). 3) Q1 order inflow stood at >INR 25bn, and 4) MDL has planned capex of INR 40-50bn over the next 3-4 years.
Outlook
We estimate deliveries in FY25/26E are likely to be ahead of schedule as well, and hence, we have increased our EPS by 51%/73% for FY25/26E, respectively. Maintain SELL with DCF-based revised TP of INR 1,165 (earlier INR 900).
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