1:2 Stock Split By Debt-Free PSU Defence Stock: Record Date Next Week; Golden Time To Acquire Shares?

Mazagon Dock Shipbuilders Limited, a Mumbai-based shipbuilding company with ISO 9001: 2015 certification, is among the best in India founded as a private limited corporation in 1934. The company's current research and development portfolio includes a wide range of products for both domestic and foreign customers. Mazagon Dock Shipbuilders Limited, a Navratna-designated organisation under the Department of Public Enterprises, is one of India's leading defence public sector undertaking shipyards.

Mazagon Dock Shipbuilders Stock Split

Due to the PSU company's first-ever stock split or sub-division of shares, Mazagon Dock Shipbuilders, a zero-debt defence PSU stock, will be the focus of attention in the next week as the stock will reach the fixed record date for the purpose of a 1:2 stock split.

According to a stock exchange filing, the company has set Friday, December 27, 2024, as the record date for which shareholders are eligible for the sub-division or split of an existing one equity share with a face value of Rs. 10/-each fully paid up into two equity shares with a face value of Rs. 5/-each fully paid up.

Mazagon Dock Shipbuilders Financials

The company's profit after tax (PAT) for the quarter ending in September 2024 was Rs 585 crore, up 75.7% year over year. It was Rs 332.9 crore in the same period of the previous fiscal year. From Rs 1,827.7 crore in the same quarter of the previous fiscal year to Rs 2,756.8 crore in Q2FY25, the quarter's revenue from operations climbed by 50.8%.

The company's EBITDA for the September 2024 quarter was Rs 511 crore, up 189.1% YoY from Rs 177 crore in the same quarter FY23. The company's overall income increased 44.8% year over year to Rs 3,011.1 crore in Q2 of FY25 from Rs 2,079.2 crore in Q2 of FY24. The total expenses rose 37.76% YoY from Rs 1,672.5 crore in the second quarter of FY24 to Rs 2,270.6 crore in Q2FY25.

Mazagon Dock Shipbuilders Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "Mazagon Dock Shipbuilders Ltd (MAZDOCK) is on the verge of a breakout from a descending triangle pattern on the daily chart. The price is consolidating above the breakout level, signaling a potential upward movement. This outlook is further supported by a significant increase in trading volume, indicating strong buying interest and a bullish sentiment in the stock. The stock is currently trading above all major Exponential Moving Averages (EMAs) - the 20-day, 50-day, 100-day, and 200-day EMAs - which reinforces the overall bullish trend."

"Furthermore, the Relative Strength Index (RSI) stands at 70, reflecting strong momentum and increasing buying activity, aligning with expectations of upward price movement. To manage risk, it is recommended to set a stop-loss at Rs 4650 to safeguard against potential reversals. For those looking to enter a position, buying near Rs 4850 could provide an optimal reward-to-risk ratio. Based on favorable technical indicators and strong support from both price action and momentum, a target price of Rs 5800 is projected, offering a promising opportunity for potential gains," the analyst further added.

Disclaimer

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