As Sensex and Nifty have hit their all-time high in December 2023, continuing on an upward trend, one stock has outshined all of its other peers in the Indian defence and shipbuilding industry- Mazagon Dock Shipbuilders.
The share prices of Mazagon Dock Shipbuilders has skyrocketed in the year 2023, shooting up way past all the other shipbuilding companies in India. The share price, in 2023 so far, has seen an increase of 170 per cent.
Mazagon Dock Shipbuilders opened at ₹2136.25 and closed at ₹2126.15 on Tuesday. Further, the share prices have dipped even more on Wednesday, expected to close at around ₹2,065, showing a momentum.
The stock had started to show major momentum last week after the news of a new deal of Mazagon Docks with a European client broke out. Here is the breakdown of why Mazagon has seen such a massive growth in stock price in 2023.
Mazagon Dock shares rise 170 per cent, here’s why
One of the prime reason why the share prices of Mazagon Dock Shipbuilders have risen by 170 per cent is because of the recent deal the company signed with a European client. The deal value is $42 million, as per company filings.
An excerpt from the Mazagon Dock company filings reads, “This is to inform that Mazagon Dock Shipbuilders Limited (MDL) has signed individual Shipbuilding Contracts with the European client for the 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.”
Apart from this, the company is on track to build three state-of-the-art 7,500-dead-weight tonne (DWT) multi-purpose hybrid powered vessels in the next 27 months, expected to give a major boost to its revenue and market value.
The major rise in share prices of Mazagon Docks was noted in the second and third quarter of the year, where it recorded a 7 per cent and a operational profit growth of 50 per cent. However, the cargo vessel and warship-making company is now seeing a slight decline in share prices, losing its initial momentum.