Monday, September 09, 2024 – Shares of Mazagon Dock Shipbuilders Ltd. (MDSL) traded lower on Monday despite the company securing a significant Rs 1,486.40-crore order from Oil and Natural Gas Corporation (ONGC). The contract, which involves a pipeline replacement project, was awarded to MDSL on Friday.
MDSL’s stock rose as much as 3.26% to Rs 4,544 per share in early trading but later gave up gains to trade 0.24% lower at Rs 4,390 per share as of 09:53 a.m. IST. This compares to a 0.07% rise in the NSE Nifty 50 index.
Main Points
ONGC Awards Major Pipeline Replacement Project to MDSL
In an exchange filing, MDSL announced that it had secured the Rs 1,486.40-crore order from ONGC for a pipeline replacement project. The project will be executed on an engineering, procurement, and construction (EPC) reimbursable basis, and MDSL is expected to complete it by February 28, 2026.
MDSL’s Readiness to Handle Significant Order Inflows
In an exclusive interview with Profit, Sanjeev Singhal, chairman and managing director of MDSL, highlighted the company’s readiness to manage anticipated significant order inflows. The shipbuilding sector is projected to see an order book totaling Rs 2 lakh crore over the next two years, shared among the three major shipbuilders.
MDSL’s Stock Performance
MDSL’s stock has risen 93.20% in the last 12 months. The total traded volume so far in the day stood at 1.8 times its 30-day average. The relative strength index (RSI) was at 44.
Out of four analysts tracking the company, two maintain a ‘buy’ rating, zero recommend a ‘hold,’ and two suggest ‘sell,’ according to Bloomberg data. The average 12-month consensus price target implies a downside of 16.1%.
MDSL’s Financial Metrics
As of August 28, 2024, MDSL had a market capitalization of Rs 86,796 crore. The company reported a profit of Rs 665.94 crore on a total income of Rs 2,628.02 crore for the quarter ended 2024.
MDSL’s 52-week high share price is Rs 5,859.95, and its 52-week low is Rs 1,742.00. The company’s return on equity (ROE) stands at 31.02%, and its price-to-earnings (P/E) ratio is 37.47.
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