Shares of state-run Mazagon Dock Shipbuilders Ltd. fell as much as 4% on Tuesday, July 29, in reaction to their June quarter results that were reported after market hours on Monday, July 28.The state-run defence equipment manufacturer reported yet another quarter, where earnings were marred by higher costs. Provisions also went up not only on a sequential basis, but also from the same quarter last year.
The company’s net profit fell 35% from last year, while its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) declined by more than half (53%) from the year-ago quarter.
Subcontracting expenses continued to remain elevated from last year, despite a 67% drop from the March quarter.
However, brokerage firm Antique Stock Broking maintained its “buy” recommendation on the stock with a price target of 3,858, which is higher than the stock’s record high of ₹3,775.Antique wrote in its note that a major trigger for Mazagon Dock will be the order for three additional Scorpene submarines, which the company is likely to get on a nominated basis. That order can potentially more than double Mazagon Dock’s order book. Additionally, ordering of the P75I and P17B are also on the anvil, making the order pipeline very strong.
The company’s net profit fell 35% from last year, while its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) declined by more than half (53%) from the year-ago quarter.
Subcontracting expenses continued to remain elevated from last year, despite a 67% drop from the March quarter.
However, brokerage firm Antique Stock Broking maintained its “buy” recommendation on the stock with a price target of 3,858, which is higher than the stock’s record high of ₹3,775.Antique wrote in its note that a major trigger for Mazagon Dock will be the order for three additional Scorpene submarines, which the company is likely to get on a nominated basis. That order can potentially more than double Mazagon Dock’s order book. Additionally, ordering of the P75I and P17B are also on the anvil, making the order pipeline very strong.
“We remain positive on the stock, given the large order pipeline, unmatched position in submarine building, and the government’s focus on developing the shipbuilding sector,” Antique’s note said.
However, the brokerage notes a risk of delay in the awarding of these orders and hence cut its financial year 2026 Earnings Per Share (EPS) estimate by 8.3%, while keeping the estimates for next year largely unchanged.
Shares of Mazagon Dock Shipbuilders are trading 3.5% lower in early trade on Tuesday at ₹2,695.5, which is a decline of over 28% from its record high level of ₹3,775.
First Published: Jul 29, 2025 9:09 AM IS
