Mazagon Dock Shipbuilders has experienced a remarkable surge in its share price, skyrocketing by 472% from its one-year low levels. The stock has seen a significant upward trend, reaching its 52-week high of Rs 1,454.10 with heavy trading volumes. Investors are now contemplating whether it's the opportune moment to buy, sell, or hold Mazagon Dock shares.
HDFC Securities has highlighted the positive prospects for Mazagon Dock, emphasizing its role as India's sole shipyard engaged in constructing destroyers and conventional submarines for the Indian Navy. The defense ministry's upcoming bids could potentially boost the company's order book and enhance revenue visibility.
The recent announcement of a contract worth Rs 2,724 crore from the Indian Navy further adds to Mazagon Dock's positive outlook. The contract involves performing the Medium Refit cum Life Certification (MRLC) for the second submarine of the Shishumar class, called INS Shankush.
Aamar Deo Singh, Head Advisory at Angel One Ltd, commends Mazagon Dock's impressive performance, noting its consistent profit growth of 19.50% CAGR over the past five years. The company saw significant revenue growth in the fiscal year 2022-23 (FY23), with a remarkable 80% increase in net profit compared to FY22. While investor confidence remains high, Singh suggests considering booking partial profits at current levels.
Market expert Ravi Singh observes a strong bullish trend in Mazagon Dock's stock price, evident in both daily and weekly charts. Accumulating volumes indicate a potential uptrend from current levels, making it an attractive option for long-term investors with a target price of Rs 1,600.
Kush Ghodasara, CMT, identifies a fresh buying momentum for Mazagon Dock, with the stock touching a new lifetime high on heavy volumes. Based on technical analysis, Ghodasara suggests a target of Rs 1,605, with indicators supporting the upward momentum. However, it is advisable to set a strict stop loss at Rs 1,310.
VLA Ambala, a research analyst at Stock Market Today, highlights the multibagger potential of Mazagon Dock, which has delivered over 560% returns in just three years since its listing at around Rs 215. The company saw a significant increase in profits, with net income growing at a faster rate than average for other companies in the industry. Ambala recommends holding the stock with a trailing stop loss set at Rs 1,200, while the expected targets range between Rs 1,500 and Rs 3,000 for a holding period of 2 months to 1 year.
While the Indian equity benchmarks ended on a positive note in the previous session, with notable gains in energy and metal stocks, investors are closely monitoring Mazagon Dock's impressive rally and weighing their options for potential investment opportunities.