Rs 15.34/Share Dividend: PSU Defence Stock Gains On 1600 Cr Order Win, Up 933% In 3-Yrs

Mazagon Dock Shipbuilders shares witnessed a rally of 3.35% intraday to 2114.85 apiece on BSE after it has signed a contract with Acquisition wing of Ministry of Defence for construction and delivery of six (06) next generation Offshore Patrol Vessels (NGOPVs) for Indian Coast Guard (ICG) on 20 Dec 2023. Mazagon Dock Shipbuilders share offered shareholders return of 167% year-to-date. The order size is worth 1600 crore.

Earlier this month on December 15, Mazagon Dock Shipbuilders Limited (MDL) signed individual Shipbuilding Contracts with the European client for construction of three (03) units of 7,500 DWT Multi-Purpose Hybrid Powered Vessels on December 14, 2023 for a value of approximately 42 million USD. Mazagon will design, build and deliver the vessels after completion. The 1st vessel delivery is TO + 41 months and delivery of subsequent vessels at intervals of Five (05) months, where TO is the date of release of advance payment by the Buyer to the Seller, as per the regulatory filing of Mazagon Dock Shipbuilders.

Meanwhile, the leading public sector undertaking on November 8, 2023 approved an interim dividend of 153% being Rs. 15.34 per equity share aggregating to Rs. 309.39 crore for the financial year 2023-24. This is the highest dividend amount the large cap PSU defence company has declared. Earlier, its highest dividend was Rs 9.1 that it announced in November 2022.

Check details below:

Mazagon Dock Shipbuilders Declares Highest Interim Dividend: According to the BSE filing issued on November 8, 2023, "approved declaration of interim dividend @ 153% being Rs 15.34 per equity share aggregating to Rs 309.39 crore to be paid out of the profits of the company for the financial year 2023-24." The Board has declared Monday, 20 November 2023 as the record date for reckoning eligibility of shareholders for the purpose of payment of interim dividend. The interim dividend shall be paid on or before 07, December 2023.

Mazagon Dock Shipbuilders Quarterly Results: The company for the quarter ended September 30, 2023 declared its revenue from operations at Rs 1827 crore as against Rs 1702 crore it declared in the corresponding period of last year. Mazagon Dock announced its net profit for the period at Rs 332.9 crore as against Rs 213.9 crore reported in the year ago quarter.

The company declared its EBITDA for the quarter under consideration to Rs 176.7 crore year-on-year (YoY), up 50%. EBITDA margin expanded by approximately 300 basis points to 9.7% from 6.9% in September last year.

Mazagon Dock Stock Performance & Return: Current market price of Mazagon Dock share on BSE is Rs 2113.10 per share. Its 52-week high price is Rs 2483.00 per share and 52-week low price is quoted at Rs 612.80 per share, respectively. The company's market capitalisation is Rs 42,619.11 crore. Mazagon Dock share gained 150% in last 1-year, soared 746% in last 2-years, and offered shareholders an attractive return of 933% in last 3-years.

Mazagon Dock About: Mazagon Dock Shipbuilders Limited is one of the leading shipbuilding yards in India. The History of Mazagon Dock dates back to 1774, when a small dry dock was constructed in Mazagon. Over the years, MDL has earned a reputation for quality work and established a tradition of skilled and resourceful service to the shipping world in general and the Indian Navy & Coast Guard. It was incorporated as a Private Limited Company in 1934. After its takeover by the Government in 1960, Mazagon Dock grew rapidly to become the premier war-shipbuilding yard in India, producing warships for the Navy and offshore structures for the Bombay High.

Disclaimer:

The stock highlights the order win and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.