Mazagon Dock Shipbuilders share price touched new 52-week high and gained over 7% on Monday’s following the defence ministry’s signing of a ₹2,725 crore contract with the company on Friday for the restoration of the submarine INS Shankush. Shankush is a submarine of the Sub-Surface Killer (SSK) class. Mazagon Dock share price opened at ₹1,280 apiece on BSE. The stock hit an intraday high at ₹1,341 and low at ₹1,273.
“Mazagon dock is in action due to news from Defence ministry inks ₹2,725 cr contract with MDL for refit of submarine. The leading player in the shipbuilding industry, has witnessed a spectacular rally with the stock gaining almost 64% YTD. Technically upside is limited from here up to 1,400 levels in the medium term. Overall we remain optimistic on the sector,” said Prashanth Tapse, Senior Vice President of Research at Mehta Equities.
According to the Ministry of Defence, a contract for the medium refit with life certification (MRLC) of the subsurface killer class submarine INS Shankush was signed on June 30 with M/S Mazagon Dock Shipbuilders Ltd, Mumbai, for a total of ₹2,725 crore. It stated that the MRLC submarine will be delivered in 2026.
After MRLC has been completed, the Indian Navy’s operational fleet will welcome the combat-ready INS Shankush with increased combat capabilities.
According to the ministry, this project is a crucial milestone in the development of Mazagon Dock as an Maintenance, Repair and Overhaul MRO Hub to serve India’s industrial ecosystem.
More than 30 MSMEs would be involved in the project, which would create 1200 man-days of employment every day for the life of the project.
On the technical front, the stock price rose 435.7% and outperformed its sector by 384.3% in the past year, as per trendlyne data.
“This stock is in a strong uptrend, and today also we are seeing a gap up opening backed by strong volumes in the initial hours, this upmove is likely to continue where immediate upside is expected towards 1500, and 1200 is immediate support,” said Rajesh Bhosale – Equity Technical and Derivative Analyst, Angel One.
Mazagon Dock Shipbuilders share price has risen 272% in last one year; is it still a buy?”
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Updated: 03 Jul 2023, 10:40 AM IST