Is Mazagon Dock overvalued or undervalued?

As of August 10, 2023, Mazagon Dock Shipbuilders Ltd. is considered overvalued with high valuation ratios (PE of 56.89, Price to Book of 17.29, EV/EBITDA of 58.83) compared to its peers, despite a strong past year return of 114.11%.

As of 10 August 2023, the valuation grade for Mazagon Dock Shipbuilders Ltd. has moved from very attractive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued based on its high valuation ratios. The PE ratio stands at 56.89, the Price to Book Value is 17.29, and the EV to EBITDA ratio is 58.83, all of which are considerably elevated compared to industry norms.<BR><BR>In comparison to its peers, Mazagon Dock's valuation appears excessive, especially when looking at similar companies. For instance, while Mazagon Dock has a PE ratio of 56.89, other peers may have significantly lower ratios, suggesting that investors are paying a premium for its stock. Additionally, despite a strong return of 114.11% over the past year, which outpaces the Sensex's 7.55%, the current high valuation metrics indicate that the stock may not sustain such performance moving forward.

What does Mazagon Dock do?

Mazagon Dock Shipbuilders Ltd is a leading Indian defense company specializing in the construction and repair of ships and submarines. As of March 2025, it reported net sales of ₹3,174 crore and a net profit of ₹325 crore, with a market cap of ₹137,165 crore.

Overview:<BR>Mazagon Dock Shipbuilders Ltd is a leading Defence Public Sector Undertaking engaged in the building and repairing of ships, submarines, and various types of vessels in the Aerospace & Defense industry, categorized as a Large Cap company.<BR><BR>History:<BR>Mazagon Dock Shipbuilders Ltd was incorporated on February 26, 1934, in Mumbai. The company was formerly known as Mazagon Dock Limited. The latest quarterly results reported net sales and net profit for the period ending March 2025.<BR><BR>Financial Snapshot:<BR>Net Sales: 3,174 Cr (Quarterly Results - Mar 2025) <BR>Net Profit: 325 Cr (Quarterly Results - Mar 2025) <BR>Market Cap: Rs 137,165 Cr (Large Cap) <BR><BR>Key Metrics:<BR>P/E: 57.00 <BR>Industry P/E: 63 <BR>Dividend Yield: 0.60% <BR>Debt Equity: -2.03 <BR>Return on Equity: 30.40% <BR>Price to Book: 17.42 <BR><BR>Contact Details:<BR>Details: No Company Details Available <BR>Registrar Address: Not available.

Who are in the management team of Mazagon Dock?

As of March 2022, the management team of Mazagon Dock includes Vice Admiral Narayan Prasad (Chairman & Managing Director), Sanjeev Singhal (CMD & Director of Finance), and several other directors and non-official directors overseeing the company's operations and strategy.

As of March 2022, the management team of Mazagon Dock includes:<BR><BR>1. Vice Admiral Narayan Prasad - Chairman & Managing Director<BR>2. Jasbir Singh - Director<BR>3. Sanjeev Singhal - CMD & Director (Finance)<BR>4. Biju George - Director (Ship building)<BR>5. Mallikarjunarao Bhyrisetty - Non Official Director<BR>6. Neeru Singh Jagjeet Kaur - Non Official Director<BR>7. Shambhuprasad B Tundiya - Non Official Director<BR>8. Cdr. Vasudev Ranganath Puranik - Director (Corporate Planning)<BR>9. Madhavi Kulkarni - Company Secretary & Compliance Officer<BR><BR>This team oversees the strategic and operational aspects of the company.

When is the next results date for Mazagon Dock?

No Upcoming Board Meetings

Who are the peers of the Mazagon Dock?

Mazagon Dock's peers include Hind.Aeronautics, Bharat Electron, Bharat Dynamics, Cochin Shipyard, and others. Key insights show excellent management and capital structures at Hind.Aeronautics and Bharat Electron, with Bharat Electron leading in 1-year returns at 24.48%, while Mazagon Dock's return is 14.97%.

Peers: The peers of Mazagon Dock are Hind.Aeronautics, Bharat Electron, Bharat Dynamics, Cochin Shipyard, Garden Reach Sh., Zen Technologies, Data Pattern, Astra Microwave, Mishra Dhatu Nig, and Paras Defence.<BR><BR>Quality Snapshot: Excellent management risk is observed at Hind.Aeronautics, Bharat Electron, and Mazagon Dock, while Good management risk is found at Bharat Dynamics, Cochin Shipyard, Garden Reach Sh., Zen Technologies, Data Pattern, Astra Microwave, Mishra Dhatu Nig, and Paras Defence. For Growth, Excellent growth is seen at Hind.Aeronautics, Bharat Electron, Garden Reach Sh., and Zen Technologies, while Below Average growth is noted at Bharat Dynamics and Cochin Shipyard, and the rest have Good growth. In terms of Capital Structure, Excellent capital structure is present at Hind.Aeronautics, Bharat Electron, Mazagon Dock, Bharat Dynamics, Cochin Shipyard, and the rest have Good or Below Average capital structures.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Bharat Electron at 24.48%, while the lowest is Cochin Shipyard at -29.31%. Mazagon Dock's 1-year return is 14.97%, which is higher than Cochin Shipyard but lower than Bharat Electron. Additionally, Cochin Shipyard and Mishra Dhatu Nig have negative six-month returns.

Who are the top shareholders of the Mazagon Dock?

The top shareholder of Mazagon Dock is The President of India, holding 84.83% of the shares. Individual investors own 9.56%, mutual funds hold 1.34%, and foreign institutional investors possess 2.26%.

The top shareholders of Mazagon Dock are primarily the promoters, with The President of India holding the largest stake at 84.83%. There are no pledged promoter holdings, and individual investors collectively hold 9.56% of the shares. Additionally, 28 mutual fund schemes own 1.34%, and 156 foreign institutional investors (FIIs) hold 2.26% of the company's shares. There are no significant public shareholders listed.

How big is Mazagon Dock?

As of 24th July, Mazagon Dock Shipbuilders Ltd has a market capitalization of 118,190.00 Cr, with net sales of 11,431.88 Cr and a net profit of 2,413.51 Cr for the latest four quarters. Shareholder's funds are 6,243.47 Cr and total assets amount to 28,849.01 Cr as of March 2024.

As of 24th July, <BR><BR>Mazagon Dock Shipbuilders Ltd has a market capitalization of 118,190.00 Cr, categorizing it as a Large Cap company.<BR><BR>For the latest four quarters, the company reported Net Sales of 11,431.88 Cr and a Net Profit of 2,413.51 Cr.<BR><BR>The latest annual period for the balance sheet is March 2024, with Shareholder's Funds amounting to 6,243.47 Cr and Total Assets totaling 28,849.01 Cr.

Are Mazagon Dock latest results good or bad?

Mazagon Dock's latest Q2 FY26 results are strong, with a net profit of ₹749.48 crores, a 65.76% increase from the previous quarter, and improved operating margins. The company's zero-debt status and strong cash flow further enhance its positive performance, although high stock valuation may pose risks for new investors.

Mazagon Dock's latest results for Q2 FY26 are quite strong, indicating a positive performance overall. The company reported a net profit of ₹749.48 crores, which represents a significant increase of 65.76% compared to the previous quarter. Year-on-year, this reflects a growth of 28.10%. <BR><BR>Additionally, net sales rose by 11.57% quarter-on-quarter to ₹2,929.24 crores, and the operating margin improved to 23.71%, up from 11.49% in the previous quarter. This margin expansion highlights enhanced operational efficiency and a favorable project mix.<BR><BR>The company's financial health is further underscored by its zero-debt status, strong return on equity of 30.40%, and robust cash generation, with operating cash flow reaching a record ₹2,078.05 crores in FY25. <BR><BR>While the long-term outlook remains positive due to India's focus on defense modernization, the stock is currently trading at a high valuation, which may pose some risks for new investors. Overall, the recent results indicate a solid operational turnaround and strong profitability metrics, making the latest performance good for Mazagon Dock.

Has Mazagon Dock declared dividend?

Mazagon Dock Shipbuilders Ltd has declared a dividend of 120%, amounting to ₹2.7 per share, with an ex-date of November 4, 2025. The company has demonstrated strong total returns across various periods, particularly over the long term.

Mazagon Dock Shipbuilders Ltd has declared a dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 120%<BR>- Amount per share: 2.7<BR>- Ex-date: 04 Nov 25<BR><BR>Dividend Yield: 0.62%<BR><BR>Total Returns by Period:<BR>In the last 3 months, the price return was 2.0%, the dividend return was 0.31%, resulting in a total return of 2.31%.<BR><BR>Over the past 6 months, the price return was -8.38%, the dividend return was 0.29%, leading to a total return of -8.09%.<BR><BR>In the last year, the price return was 38.28%, the dividend return was 0.58%, culminating in a total return of 38.86%.<BR><BR>For the 2-year period, the price return was 169.97%, the dividend return was 6.22%, resulting in a total return of 176.19%.<BR><BR>In the 3-year span, the price return was 766.01%, the dividend return was 19.52%, leading to a total return of 785.53%.<BR><BR>Over the last 4 years, the price return was 2058.79%, the dividend return was 63.69%, culminating in a total return of 2122.48%.<BR><BR>In the 5-year period, the price return was 3223.21%, the dividend return was 103.60%, resulting in a total return of 3326.81%.<BR><BR>Overall, Mazagon Dock has declared a significant dividend and has shown impressive total returns across all periods, particularly over the longer term, indicating strong performance and shareholder value.

How has been the historical performance of Mazagon Dock?

Mazagon Dock has demonstrated significant growth in financial performance, with net sales rising from 4,917.92 crore in March 2020 to 11,431.88 crore in March 2025, alongside increased profits and improved operational efficiency, culminating in a profit after tax of 2,277.34 crore and a strong PAT margin of 19.92%. The company's total assets were reported at 28,029.45 crore, with a positive cash flow from operating activities of 2,078 crore.

Answer:<BR>The historical performance of Mazagon Dock shows significant growth in net sales and profits over the past few years, culminating in a net sales figure of 11,431.88 crore for the year ending March 2025, up from 9,466.58 crore in March 2024 and 7,827.18 crore in March 2023. The total operating income has followed a similar upward trend, reaching 11,431.88 crore in March 2025. Operating profit (PBDIT) also increased to 3,200.92 crore in March 2025 from 2,513.08 crore in the previous year, indicating improved operational efficiency. Profit before tax rose to 3,061.66 crore, while profit after tax reached 2,277.34 crore, reflecting a strong PAT margin of 19.92% for March 2025. The company’s total assets were reported at 28,029.45 crore, with total liabilities slightly decreasing to 28,029.45 crore from 28,849.01 crore in March 2024. Cash flow from operating activities improved significantly to 2,078 crore in March 2025, contributing to a net cash inflow of 66 crore.<BR><BR>Breakdown:<BR>Mazagon Dock's financial performance has shown a robust upward trajectory, particularly in net sales, which increased from 4,917.92 crore in March 2020 to 11,431.88 crore in March 2025. This growth is mirrored in total operating income, which reached the same figure as net sales in March 2025. The company has effectively managed its expenditures, resulting in an operating profit (PBDIT) that rose from 817.81 crore in March 2020 to 3,200.92 crore in March 2025. Profit before tax also saw a substantial increase, climbing from 727.48 crore in March 2020 to 3,061.66 crore in March 2025, while profit after tax surged to 2,277.34 crore, showcasing a consistent improvement in profitability. The total assets of Mazagon Dock stood at 28,029.45 crore in March 2025, with total liabilities decreasing slightly, indicating a stable financial position. Cash flow from operating activities has significantly improved, highlighting the company's ability to generate cash effectively, culminating in a positive net cash inflow for the year.

Is Mazagon Dock technically bullish or bearish?

As of December 2, 2025, Mazagon Dock's technical trend has shifted to a bearish stance with moderate strength, driven by bearish MACD and moving averages, despite some divergence indicated by the monthly outlook.

As of 2 December 2025, the technical trend for Mazagon Dock has changed from mildly bearish to bearish. The current stance is bearish with moderate strength. Key indicators driving this include a bearish MACD on the weekly timeframe, bearish moving averages on the daily timeframe, and a mildly bearish KST on the weekly. The Bollinger Bands indicate a bearish trend on the weekly, while the monthly shows a mildly bullish stance, suggesting some divergence. Overall, the combination of these indicators points to a bearish outlook in the near term.

Should I buy, sell or hold Mazagon Dock?

Which are the latest news on Mazagon Dock?

Why is Mazagon Dock falling/rising?

As of 04-Dec, Mazagon Dock Shipbuilders Ltd's stock is rising to 2,641.15, reflecting a 0.88% increase after a trend reversal. Despite strong long-term fundamentals, the stock faces challenges from recent profit declines and high valuations.

As of 04-Dec, Mazagon Dock Shipbuilders Ltd's stock price is rising, currently at 2,641.15, reflecting a change of 23.0 (0.88%) upward. This increase follows a trend reversal after three consecutive days of decline. The stock's performance today is inline with the sector, and there has been a notable rise in investor participation, with delivery volume increasing by 1.58% against the 5-day average.<BR><BR>Despite the recent rise, the stock is currently trading lower than its moving averages across various periods, indicating some underlying weakness. However, the company demonstrates strong long-term fundamental strength, evidenced by an average Return on Equity (ROE) of 24.55%, and healthy growth in net sales and operating profit. The stock has also outperformed the BSE500 over the last three years, generating consistent returns.<BR><BR>On the downside, the company reported flat results for the September quarter, with a significant decline in profit after tax (PAT) of -21.46% for the nine months. Additionally, the stock is considered to have a very expensive valuation, trading at a premium compared to its peers, which may raise concerns among investors.<BR><BR>In summary, while the stock is currently rising due to increased investor participation and strong long-term fundamentals, it faces challenges from recent profit declines and high valuations.