28.7 C
New York
HomeTop Global NewsMarketsThis shipbuilding stock has zoomed 108% from June low; m-cap hit Rs...

This shipbuilding stock has zoomed 108% from June low; m-cap hit Rs 1 trn | News on Markets

Mazagon Dock stock rises: Shares of Mazagon Dock Shipbuilders (MDL) are continued at their upward movement, hitting a new high of Rs 4,989, gaining 6.5 per cent on the BSE in Thursday’s intra-day trade on healthy business outlook.

In the past two trading days, the stock of state-owned shipbuilding company has surged 15 per cent. It has more than doubled or zoomed 108 per cent from its previous month low of Rs 2,400 touched on June 5.

A sharp rise in stock price has seen MDL become the first shipbuilding company to join Rs 1 trillion market capitalisation club. MDL’s market cap hit Rs 1.01 trillion in intra-day trade today.

At 09:50 AM, with Rs 99,330 crore market cap, MDL was trading 5 per cent higher at Rs 4,918.35 on the BSE. In comparison, the BSE Sensex was up 0.44 per cent at 80,338.

In the past seven trading days, MDL has rallied 25 per cent after the company on June 26 announced that it has bagged “Navratna” status, the first shipyard to achieve this status, from the Department of Public Enterprises.

MDL is now the 21 Navratna Central Public Sector Enterprises (CPSE) in the country and 3rd in defence public sector undertakings (PSUs).

MDL said it has achieved this feat owing to its strong legacy of technical proficiency in Warship and Submarine building and a workforce with professional acumen, innovative spirit and unmatched performance that has elevated the growth of the company to new heights.

The Navratna status grants MDL the privilege to form joint ventures, alliances, and establish subsidiaries abroad, providing them with greater flexibility and autonomy in their business operations.

MDL is engaged in the construction and repair of submarines and warships for the Ministry of Defence, Government of India (MoD) for use by the Indian Navy and other vessels for commercial clients. As on MDL have total order book position of Rs 38,561 crore.

MDL is a strong contender for major future projects of Indian Navy, Indian Coast Guard and Overseas Clients. Some of the identified major Business Opportunities where MDL is a strong contender are 5 in numbers Next Generation Destroyers, Project P75(I) conventional Submarine 6 in numbers.

MDL, as the lead shipyard for construction of frontline Warships and Submarines, is a highly potential contender to build Warships and Submarines envisaged to meets Indian Navy’s Acquisition Plan.

India’s strategic position along the East bound and West bound International Trade routes offers an opportunity to undertake repairs of the vessels plying on these routes. A main Container route connecting America and Europe to the East passes very close to the Indian coastline, presenting a major opportunity for repairs.

As per the national perspective plan of Sagarmala project, Coastal and Inland Waterways traffic is expected to shoot up 15 times over the next 20 years. Similarly, capacity augmentation is expected to result in a five times rise in traffic capacity, from the existing 350 million tonnes. This is expected to bring in additional ship repair business, MDL said.

First Published: Jul 04 2024 | 10:03 AM IST

Source link

latest articles

explore more


Please enter your comment!
Please enter your name here