MAZDOCK - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.5

📊 Core Financials Analysis

Profitability

PAT for the quarter: ₹419 Cr vs ₹327 Cr — despite a reported quarterly profit variation of –37%, the absolute figures remain strong.

EPS: ₹51.5 — solid earnings base.

Return Metrics

ROCE: 48.8% — exceptional capital efficiency.

ROE: 36.5% — outstanding shareholder return.

Debt Profile

Debt-to-equity: 0.00 — completely debt-free, a major strength.

Cash Flow: Not explicitly stated, but strong profitability and zero debt imply robust operating cash flows.

💹 Valuation Indicators

Metric Value Commentary

P/E Ratio 57.9 Slightly above industry average (55.5) — reflects premium pricing.

P/B Ratio ~16.8 High, but justified by superior ROE and strategic positioning.

PEG Ratio 1.01 Fairly valued relative to growth — not cheap, but not overpriced.

Intrinsic Value Likely near current price Supported by strong earnings and strategic outlook.

🧠 Business Model & Competitive Advantage

Mazagon Dock Shipbuilders Ltd. (MAZDOCK) is a premier defense PSU specializing in

Shipbuilding & Submarine Construction

Only Indian shipyard to build destroyers and conventional submarines for the Navy

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Lead builder of Nilgiri-class stealth frigates and Veer/Khukri-class corvettes.

Defense Focus

Supplies high-tech warships and submarines to the Indian Navy and Coast Guard.

Strong government backing and strategic importance in national defense.

Global Reach

Serves both domestic and international clients in defense and civil marine sectors

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Operational Strength

Over 800 vessels built since 1960

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Navratna status — reflects operational excellence and autonomy.

Its competitive edge lies in technological capability, government contracts, and strategic defense alignment, making it a cornerstone of India’s maritime defense infrastructure.

📈 Technical & Sentiment Signals

RSI: 66.1 — approaching overbought zone, short-term caution.

MACD: Strongly positive — bullish momentum.

Volume: Below weekly average — suggests mild consolidation.

DMA 50/200: Price above both — confirms long-term uptrend.

🎯 Entry Zone & Long-Term Guidance

Suggested Entry Zone: ₹2,750–₹2,850 — near DMA levels and below RSI peak.

Long-Term View: MAZDOCK is a high-quality defense play with strong fundamentals, zero debt, and strategic importance. Ideal for long-term holding, especially for investors seeking exposure to India’s defense modernization and naval expansion. Dividend yield of 0.58% adds modest income support.

You can explore its fundamental analysis or company profile on Screener for deeper insights. Let me know if you'd like a comparison with Cochin Shipyard or HAL.

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www.screener.in

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shareprice-target.com

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