MAZDOCK - Investment Analysis

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

Investment Rating: 4.4

⚓ Fundamental Analysis: Mazagon Dock Shipbuilders (MAZDOCK)

Mazdock is a government-owned defense PSU specializing in shipbuilding and submarine construction. Its fundamentals are exceptionally strong, making it a compelling long-term candidate — though recent price correction warrants caution on timing.

Metric Value Implication

Market Cap ₹1,09,739 Cr. Large-cap; strategic defense sector exposure

Stock P/E 50.6 Fairly valued relative to industry PE

PEG Ratio 0.88 Attractive — undervalued relative to earnings growth

ROE / ROCE 34.0% / 43.2% Outstanding — strong capital efficiency

Dividend Yield 0.54% Modest — bonus for long-term holders

Debt-to-Equity 0.00 Zero debt — pristine balance sheet

EPS ₹53.8 Strong earnings base

Profit Growth (QoQ) -35.0% Volatile — seasonal/project-based revenue cycles

📉 Technical & Trend Analysis

Current Price: ₹2,720

DMA 50 / DMA 200: ₹3,094 / ₹2,674 — trading below 50 DMA, near 200 DMA

RSI: 23.1 — extremely oversold, potential bounce zone

MACD: -117 — bearish momentum, but may be bottoming

Volume: Surging — possible capitulation or accumulation

✅ Is It a Good Long-Term Investment?

Yes. Mazdock combines strong profitability, zero debt, and strategic importance in defense. The PEG ratio below 1 and high ROE/ROCE make it a rare value-growth hybrid. The recent correction offers a potential entry opportunity.

🎯 Ideal Entry Price Zone

Buy Zone: ₹2,600–₹2,750

Near 200 DMA and RSI oversold zone

Accumulate gradually — especially if price stabilizes and MACD flattens

Ideal for long-term investors seeking exposure to defense infrastructure

🧭 Exit Strategy / Holding Period (If Already Holding)

If you're already invested

Holding Period: 3–5 years — to benefit from defense capex cycles and order book expansion

Exit Strategy

Partial Exit near ₹3,600–₹3,750 if valuation stretches (P/E > 60)

Hold if ROE stays above 30% and PEG remains below 1.5

Reassess if quarterly profit volatility worsens or order inflows slow

Would you like a breakdown of upcoming defense sector catalysts or a comparison with peers like Cochin Shipyard or BEL to diversify your exposure?

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