Defence PSU Stock: Rs 145 to Rs 4245 in 4 years; do you own?

Authored by : Rishabh Raj Updated Jun 22, 2024 | 08:39 PM IST Multibagger Defence PSU Stock: Mazagon Dock Shipbuilders made its D-Street debut on October 12, 2020. (Image: iStock/ET NOW News)

Multibagger Defence PSU Stock : A defence sector stock has delivered a massive return of 2,828 per cent in less than four years, rallying from its IPO issue price Rs 145 to its recent all-time high of Rs 4,245.

The stock under review is Mazagon Dock Shipbuilders . 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.

Mazagon Dock IPO Listing Price Mazagon Dock Shipbuilders made its D-Street debut on October 12, 2020 at Rs 216.25, at a near 50 per cent premium to its IPO price of Rs 145.

Mazagon Dock IPO was a book built issue of Rs 443.69 crore. The issue was entirely an offer for sale of 3.06 crore shares. The minimum lot size for an application was 103 shares and the minimum amount of investment required by retail investors was Rs 14,935.

Mazagon Dock Share Price History: From Rs 145 to Rs 4,245

From the IPO price, the defence stock journeyed to its all-time high of Rs 4,245 on NSE, made on June 19, in just a matter of four years. However, the stock has retreated over 8 per cent to close at Rs 3894.2 apiece on Friday, June 21.

If an investor had applied for 1 lot of Mazagon Dock Shipbuilders' shares, his/her investment would now have turned Rs 4.01 lakh, as of June 21's closing price.

Mazagon Dock Shipbuilders commands a market cap of Rs 78,544.14 crore, as of June 21. Its shares have a 52-week range of Rs 1,162 - 4,245 on NSE. The defense stock is a constituent of the BSE 500 index.

Why are Mazagon Dock Share Is Rising? Mazagon Dock's shares have sailed along a heavy tide in the overall defence sector, which has come from the Defence Minister Rajnath Singh's agenda to boost defence exports in the coming years. Upon beginning his second term in the Defence Ministry, Singh set an ambitious target of exporting over Rs 50,000 crore worth of defence equipment by 2028-2029.

He also reiterated the government's commitment to achieving self-reliance in defence manufacturing and modernising the armed forces, which paves a strong growth path for defence companies.

As a result, investors have been eagerly buying shares of defence companies, driven by the government's continued push for defence indigenisation and the opening of new export opportunities.

Mazagon Dock Q4 Results 2024 Mazagon Dock Shipbuilders reported a consolidated net profit of Rs 663 crore for the quarter ended March 31, 2024, which is a 103% increase from the Rs 326 crore reported in the same quarter last year. Sequentially, the profit after tax (PAT) increased by 5.7%.

The consolidated revenue from operations for the reported quarter was Rs 3,104 crore, up from Rs 2,079 crore in the same period last year, showing a year-on-year growth of 49.3%. Compared to the previous quarter (Q3FY24), the consolidated revenue rose by 31% from Rs 2,362 crore.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)