Mazagon Dock Shipbuilders Ltd. share price target

Order pipeline remains robust; longer-term growth outlook intact: Order pipeline also remains strong for the company, considering the opportunities from both defence & commercial segments. Contracts like additional three Kalvari class submarines (expected order size Rs 3000040000 crore) and six next-generation submarines under P-75I (expected value ~Rs 70000 crore) have already been cleared from govt and expected to be placed with the company in near to medium term. Following this, other major contracts like next-generation corvettes (expected value ~Rs 36000 crore), next-generation frigates or P-17B (expected value ~Rs...

Acquiring 15 acres for a new facility with a larger dry dock.

Mazagon Dock Shipbuilders (MDL) has reported robust Q1FY25 performance. EBITDA margin increased to highest level of 27.2% (16.9% in Q4FY24) aided by lower provisions and deliveries of ships.

Mazagon Dock Shipbuilders (MDL) has reported Q1FY24 EBITDA of INR 1.7bn (down 1.1% YoY and 18.5% QoQ). Key points: 1) Execution in Q1FY24 comprised mainly of P15B destroyers and P17A stealth frigates; 2) EBITDA margin has improved marginally to 7.9% (vs 7.8% in Q1FY23); and 3) orderbook as of Jun’23 end was marginally up QoQ at INR 39.1bn as the company received one MRLC order of INS Shankush at INR 27.3bn.

Mazagon Dock Shipbuilders’ (MDL) Q4FY23 performance was 50% ahead of our estimates mainly on higher-than-expected revenue. Key points: 1) Revenue grew 49% YoY (14.5% QoQ) to Rs20.8bn mainly led by the commissioning of 5th submarine (under P75 programme).

Mazagon Dock Shipbuilders’ (MDL) Q3FY23 performance was 70% ahead of estimates mainly due to the delivery of 5th Scorpene class submarine ‘Vagir’ to the India Navy ahead of time (on Dec 20, ’22). Key points: 1) Revenue grew 17% YoY (7% QoQ) to Rs18.2bn on residual revenue recognition from delivery of submarine; 2) operating efficiencies and lower direct cost booked resulted in EBITDA margin rising to 16.3% (Q3FY22: 13%).

Mazagon Dock Shipbuilders’ (MDL) Q2FY23 performance was slightly lower than street estimates. Key points: 1) EBITDA margin contracted to 6.9% (Q1FY23: 7.8%) due to higher cost and lower revenue booking.

Mazagon Dock Shipbuilders’ (MDL) Q1FY23 print was better than our estimates with revenue growth of 83.7% YoY.

Registered Office:Rukmini Towers, 3rd& 4th Floor, # 3/1, Platform Road, Sheshadripuram, Bangalore - 560 020,...

Strong order book to provide long term revenue visibility MDL's order book as on July 31, 2020 from its shipbuilding and submarine & heavy engineering segment is at | 54074 crore comprising three major shipbuilding projects and two submarine projects. The strong order book provides long term revenue visibility. MDL expects to have a decent order pipeline in the next one to three years with several projects lined up from Indian Navy and Indian Coast Guard worth ~between | 20000 and | 30000 crore. MDL believes it has the competitive advantage for mega projects like...

Mazagon Dock Shipbuilders Ltd (MDSL) is Indias leading defence public sector undertaking shipyard under the Ministry of Defence (MoD). Mazagon Dock is primarily engaged in constructing and repairing warships and submarines for MoD and other types of vessels i.e. cargo ships, multipurpose support vessels, barges and border outposts, tugs, dredgers, water tankers, etc. for commercial

Mazagon Dock Shipbuilders Ltd. (MDSL) founded on February 26, 1934 in Bombay as a private limited company was nationalized in 1960 and is now a Defence PSU under ministry of Defence and conferred with the Mini Ratna I status. It manufactures warships & submarines for the Indian Navy and offshore platforms and associated support vessels for offshore oil drilling. It also builds tankers, cargo bulk carriers, passenger ships and ferries. Since 1960 MDSL has built a total 795 vessels including 25 warships, from advanced destroyers to missile boats and...

IPO NOTE

Mazagon Dock Shipbuilders Limited - IPO Note Issue Open: Sept 29 Oct 01, 2020 Price Band: Rs. 135 145 Issue Size: 30,599,017 eq shares (Entirely Offer for sale) Issue Size: Rs. 413.1 443.7 cr Reservation for: QIB Upto 15,126,750 eq sh Non Institutional atleast 4,538,025 eq sh Retail atleast 10,588,725 eq sh Employee Upto 345,517 eq sh