MAZDOCK - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | MAZDOCK | Market Cap | 99,566 Cr. | Current Price | 2,469 ₹ | High / Low | 3,778 ₹ |
| Stock P/E | 40.9 | Book Value | 219 ₹ | Dividend Yield | 0.70 % | ROCE | 41.3 % |
| ROE | 30.4 % | Face Value | 5.00 ₹ | DMA 50 | 2,500 ₹ | DMA 200 | 2,544 ₹ |
| Chg in FII Hold | -0.07 % | Chg in DII Hold | -0.28 % | PAT Qtr | 464 Cr. | PAT Prev Qtr | 837 Cr. |
| RSI | 45.1 | MACD | -20.6 | Volume | 6,68,666 | Avg Vol 1Wk | 8,62,704 |
| Low price | 2,057 ₹ | High price | 3,778 ₹ | PEG Ratio | 1.30 | Debt to equity | 0.00 |
| 52w Index | 23.9 % | Qtr Profit Var | 41.9 % | EPS | 60.4 ₹ | Industry PE | 38.5 |
📊 Core Financials: Mazdock reported quarterly PAT of ₹464 Cr (down from ₹837 Cr), showing a decline but maintaining strong profitability. ROE at 30.4% and ROCE at 41.3% highlight excellent efficiency. Debt-to-equity ratio of 0.00 indicates a debt-free balance sheet. EPS at ₹60.4 is solid, supported by consistent earnings power.
💹 Valuation Indicators: Stock P/E of 40.9 is slightly above the industry average (38.5), suggesting fair-to-premium valuation. Book value at ₹219 vs CMP ₹2,469 shows a steep premium. PEG ratio of 1.30 indicates balanced earnings growth relative to price. Intrinsic value supports long-term upside, though near-term volatility persists.
⚓ Business Model & Advantage: Mazdock operates in shipbuilding and defense manufacturing, with competitive advantage in government contracts, scale, and specialized expertise. Strong efficiency metrics and debt-free operations reinforce overall health. However, profitability is cyclical, tied to defense orders and project execution.
📈 Entry Zone & Holding Guidance: The stock trades near DMA 50 (₹2,500) and DMA 200 (₹2,544), showing consolidation. RSI at 45.1 indicates mildly oversold conditions. A better entry zone would be closer to ₹2,350–₹2,450. Long-term holding is recommended given strong fundamentals, industry demand, and government backing.
Positive
- ✅ Strong ROE (30.4%) and ROCE (41.3%) efficiency
- ✅ Debt-free balance sheet (Debt-to-equity 0.00)
- ✅ EPS at ₹60.4, reflecting robust earnings base
Limitation
- ⚠️ Quarterly PAT decline (₹837 Cr → ₹464 Cr)
- ⚠️ CMP trades at a steep premium to book value (₹219 vs ₹2,469)
- ⚠️ Dividend yield at 0.70%, modest income support
Company Negative News
- 📉 FII holding decreased by 0.07%, showing reduced foreign investor confidence
- 📉 DII holding decreased by 0.28%, reflecting cautious domestic institutions
Company Positive News
- 📈 Quarterly profit variation of 41.9% year-on-year indicates strong operational momentum
- 📈 Government contracts and defense sector demand support long-term growth
Industry
- 🌐 Defense & shipbuilding industry PE at 38.5, reflecting moderate valuations
- 🌐 Long-term demand supported by defense modernization and infrastructure expansion
Conclusion
🔎 Mazdock is fundamentally strong with excellent efficiency, debt-free operations, and government-backed demand. Entry near ₹2,350–₹2,450 offers better risk-reward. Long-term investors can hold confidently, supported by strong fundamentals and industry demand, though short-term volatility should be expected due to project-based earnings.
For deeper insights, you could explore a peer comparison or a valuation analysis to assess its position against competitors and intrinsic value.