Mazagon Dock Shipbuilders Share Price Surges 15% in a Week

On Friday, March 6, Mazagon Dock Shipbuilders' share price jumped by nearly 9%, marking its second consecutive day of gains and totaling around 15% for the week. The stock has surged by 18% over the course of 2 trading sessions.

The surge in share price is attributed to the widely reported ₹99,000 crore defense contract with the Indian Navy, which the company has officially confirmed while providing key updates regarding the status of contract negotiations. The state-owned shipbuilder addressed regulatory inquiries related to recent news that sparked heightened market interest, clarifying the present phase of this substantial defense agreement.

Contract Negotiation Committee (CNC) Discussions Finalized

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The company has confirmed that the CNC discussions between the government and Mazagon Dock Shipbuilders have been finalized, signifying an important step forward in the process of awarding the contract. The proposal is now pending approval from the relevant government authorities.

Antique Stock Broking Maintains 'Buy' Recommendation

Antique Stock Broking stated that Mazagon Dock Shipbuilders could soon bounce back from its recent underperformance, as the contract for the Project 75I submarine program is expected to be finalized soon. They indicated that the final contract amount might surpass the previously estimated ₹70,000 crore. The brokerage maintained a 'Buy' recommendation with a target price of ₹3,407, based on a price-to-earnings multiple of 42 times the core earnings for FY28.

Medium-term Order Pipeline Remains Promising

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The brokerage expressed confidence that the order for three additional submarines will be finalized by the first half of FY27. They also mentioned that the medium-term order pipeline remains promising, with revenue growth expected to accelerate in the subsequent years, supported by a larger order book.

Share Price Movement

On Friday, Mazagon Dock Shipbuilders share price opened at ₹2,398.95 apiece on the BSE, touching an intraday high of ₹2,559 and an intraday low of ₹2,373.55. According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, the stock has seen strong traction this week, gaining around 15% backed with strong volumes. The prices are moving back above key moving averages, and the overall trend has turned positive. Traders are expected to maintain a positive bias, expecting a further move towards 2,700 levels, with 2,400 as a support level.