MAZDOCK - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.3
| Stock Code | MAZDOCK | Market Cap | 93,730 Cr. | Current Price | 2,324 ₹ | High / Low | 3,778 ₹ |
| Stock P/E | 40.8 | Book Value | 200 ₹ | Dividend Yield | 0.74 % | ROCE | 48.8 % |
| ROE | 36.5 % | Face Value | 5.00 ₹ | DMA 50 | 2,401 ₹ | DMA 200 | 2,562 ₹ |
| Chg in FII Hold | -0.17 % | Chg in DII Hold | -0.28 % | PAT Qtr | 837 Cr. | PAT Prev Qtr | 715 Cr. |
| RSI | 46.9 | MACD | -1.21 | Volume | 15,45,450 | Avg Vol 1Wk | 18,51,312 |
| Low price | 2,126 ₹ | High price | 3,778 ₹ | PEG Ratio | 0.71 | Debt to equity | 0.00 |
| 52w Index | 12.0 % | Qtr Profit Var | 8.97 % | EPS | 57.0 ₹ | Industry PE | 39.0 |
💰 Revenue & Profitability: Quarterly PAT rose from ₹715 Cr. to ₹837 Cr., showing consistent growth. EPS at ₹57.0 is strong, supported by ROE (36.5%) and ROCE (48.8%), reflecting excellent efficiency and profitability.
📊 Valuation: Current P/E of 40.8 is slightly above the industry average of 39.0, suggesting fair valuation with a premium justified by strong returns. Book Value at ₹200 vs CMP ₹2,324 shows a steep premium, but PEG ratio at 0.71 highlights attractive earnings growth relative to valuation.
🏦 Debt & Cash Flow: Debt-to-equity at 0.00 reflects a debt-free balance sheet, ensuring financial stability. Strong profitability supports healthy cash flows, enhancing resilience.
⚓ Business Model & Competitive Advantage: Mazagon Dock Shipbuilders operates in defense shipbuilding and submarine manufacturing, benefiting from government contracts and strategic importance. Competitive advantage lies in scale, specialized expertise, and strong order book. Risks include dependency on defense contracts and cyclical demand.
📈 Entry Zone: Current price ₹2,324 is below both 50 DMA (₹2,401) and 200 DMA (₹2,562), showing technical weakness. Fair entry zone lies between ₹2,200–2,280 for margin of safety.
⏳ Long-Term Holding Guidance: Mazagon Dock is fundamentally strong, debt-free, and enjoys a strategic moat in defense manufacturing. Long-term holding is attractive, with compounding potential supported by government defense spending and strong profitability.
Positive
- Quarterly PAT growth (₹715 Cr. → ₹837 Cr.)
- Strong EPS at ₹57.0
- Excellent ROE (36.5%) and ROCE (48.8%)
- Debt-free balance sheet
Limitation
- Stock trading below DMA 50 & 200, showing weakness
- Valuation slightly above industry average (P/E 40.8 vs 39.0)
- High dependency on government defense contracts
Company Negative News
- FII holdings decreased (-0.17%)
- DII holdings decreased (-0.28%)
- Technical indicators weak (RSI 46.9, MACD -1.21)
Company Positive News
- Quarterly profit variance up 8.97% YoY
- Strong order book and government support
Industry
- Defense shipbuilding sector trades at industry P/E of 39.0
- Strong demand driven by defense modernization
- Sector benefits from government contracts but faces cyclical risks
Conclusion
✅ Mazagon Dock Shipbuilders is fundamentally strong, debt-free, and strategically positioned in defense manufacturing. Entry near ₹2,200–2,280 offers margin of safety. Long-term holding is attractive given strong profitability, government backing, and sector demand, making it a solid candidate for compounding.
Would you like me to also prepare a peer benchmarking overlay comparing Mazagon Dock with Cochin Shipyard, Garden Reach Shipbuilders, and Hindustan Shipyard to highlight relative valuation and efficiency?