MAZDOCK - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.3

Here's a thorough look into Mazagon Dock Shipbuilders Ltd (MAZDOCK) — its strengths, valuation stance, and long-term investment potential

⚙️ Core Financials

Return Metrics

ROE: 34.0%, ROCE: 43.2% — exceptionally strong, signifying stellar efficiency and profitability.

EPS of ₹53.8 supports earnings resilience in a capital-heavy industry.

Quarterly PAT

PAT jumped to ₹452 Cr. from ₹325 Cr., but quarterly profit variation of -35.0% suggests volatility, likely due to milestone-based contract recognition.

Debt Levels

Zero debt — an impressive trait in heavy industry, offering financial agility.

📊 Valuation Metrics

Indicator Value Commentary

P/E Ratio 50.6 Matches industry average, indicating fair market positioning

P/B Ratio ~13.8 High — signals future growth baked into price

PEG Ratio 0.88 Attractive — pricing aligns well with growth expectations

Dividend Yield 0.54% Modest — suggests reinvestment focus over income

Verdict: Valuation is elevated but justified by growth visibility and capital returns. Still, price momentum needs confirmation.

⚓️ Business Model & Strategic Edge

A core defense PSU engaged in warship and submarine manufacturing, with strong order book visibility.

Benefits from strategic positioning in India’s indigenization and maritime security roadmap.

Competitive advantage from decades-long relationships with the Indian Navy and technological partnerships.

📉 Technical Signals

RSI: 23.1 — oversold territory, could attract value buyers.

MACD: -117 — bearish trend, suggesting short-term weakness.

DMA Check

Trading below 50-DMA (₹3,094) and near 200-DMA (₹2,674) — hinting at a possible consolidation phase.

🎯 Entry Zone & Investment Outlook

Entry Zone: ₹2,650–₹2,700 — near 200-DMA and RSI bottom, suitable for strategic accumulation.

Long-Term Thesis

Strong candidate for long-horizon portfolios betting on national defense capex and Make-in-India tailwinds.

Recommend staggered entry to mitigate current price volatility, but hold conviction is justified.

I can line up comparisons with peers like Cochin Shipyard or Garden Reach if you'd like to map competitive benchmarks. Or we can dig deeper into its current order pipeline and earnings growth projections. Your call.

Edit in a page