Table of Contents
Introduction: Unveiling Mazagon Dock Shipbuilders Limited
Mazagon Dock Shipbuilders Limited (MDL) is India’s leading defense public sector shipyard, engaged in the construction of warships and submarines for the Indian Navy and Coast Guard. Established in 1774, MDL has played a pivotal role in modernizing India’s naval capabilities. The company operates under the Ministry of Defence (MoD) and specializes in indigenous shipbuilding, making it a key contributor to India’s self-reliance initiative in defense manufacturing.
2. Historical Voyage: Tracing the Legacy and Milestones
MDL has an illustrious history spanning over two centuries. Some key milestones include:
1774: Founded as a small dry dock in Bombay (now Mumbai).
1960: Delivered its first warship, INS Nilgiri.
1980s: Constructed the Leander-class frigates for the Indian Navy.
2000s: Built India’s first Scorpène-class submarine (Kalvari-class).
2020s: Successfully executed Project-15B destroyers and Project-17A stealth frigates.
3. Industry Trends: Understanding the Evolving Maritime and Defense Sector
The global naval shipbuilding industry is experiencing a shift towards stealth technology, modular shipbuilding, and autonomous maritime systems. In India:
The Defense Budget has increased by 20% year-on-year.
Private players like L&T Shipbuilding and Reliance Naval are emerging.
Export potential is growing, with MDL eyeing markets in Southeast Asia and Africa.
4. Diverse Portfolio: A Deep Dive into Products and Segments
MDL operates in two primary segments:
Naval Shipbuilding
Destroyers & Frigates – Project-15B (Visakhapatnam-class), Project-17A.
Submarines – Scorpène-class (Kalvari-class) & Project-75I (next-gen submarines).
Corvettes, OPVs, and Patrol Vessels.
Commercial & Export Shipbuilding
Offshore patrol vessels for global markets.
Specialized merchant vessels and ferries.
5. Anchoring Success: Detailed Order Book Status, Execution Status, and Market Share
MDL’s ₹1.59 trillion order book ensures steady revenue inflow. Key projects:
P-15B Visakhapatnam-class Destroyers – ₹35,000 crore (4 ships, 3 delivered, 1 under construction).
Project-17A Stealth Frigates – ₹50,000 crore (4 ships, 2 launched, 2 under construction).
Scorpène-class Submarines – ₹23,000 crore (6 ordered, 5 delivered, 1 in final phase).
Next-Generation Corvettes (NGC) – ₹36,000 crore (6 ships, design phase ongoing).
P-75I Conventional Submarines – ₹43,000 crore (contract expected in FY25).
Execution Timeline
All current projects expected to be delivered by 2025-2030.
Export orders anticipated to contribute ₹10,000 crore annually starting FY26.
6. Financial Compass: Key Metrics, Market Trends, and Price Performance
Market Cap: ₹30,000 crore
Revenue Growth: 18% CAGR (past 5 years)
Profit Margins: 14% (FY24)
Piotroski Score: 8/9 (strong financial health)
Stock Performance:
3-year CAGR: 32%
5-year CAGR: 28%
10-year CAGR: 24%
7. Annual Results: A Comprehensive Fiscal Performance Analysis
| Mazagon Dock Shipbuilders Metric |
VALUE |
CHANGE % |
TREND |
ANALYSIS |
| Annual Revenue |
₹10,568.05 Cr |
24.13% |
positive |
Annual Revenue rose 24.13%, in the last year to ₹10,568.05 Cr. Its sector's average revenue growth for the last fiscal year was 10.64%. |
| Annual Net Profit |
₹1,936.97 Cr |
73.09% |
positive |
Annual Net Profit rose 73.09% in the last year to ₹1,936.97 Cr. Its sector's average net profit growth for the last fiscal year was 34.22%. |
| Price to Earning Ratio |
38.92 |
- |
positive |
Price to Earning Ratio is 38.92, lower than its sector PE ratio of 50.31. |
| Stock Price |
₹2654.80 |
179.68% |
positive |
Stock Price rose 179.68% and outperformed its sector by 103.83% in the past year. |
| Quarterly Revenue |
₹3,430.06 Cr |
33.06% |
positive |
Quarterly Revenue rose 33.06% YoY to ₹3,430.06 Cr. Its sector's average revenue growth YoY for the quarter was 11.54%. |
| Quarterly Net profit |
₹807.04 Cr |
28.76% |
positive |
Quarterly Net profit rose 28.76% YoY to ₹807.04 Cr. Its sector's average net profit growth YoY for the quarter was 5.68%. |
| Debt to Equity Ratio |
- |
- |
positive |
Debt to Equity Ratio is zero as the company is debt-free. |
| Return on Equity(ROE) |
31.02 % |
31.02% |
positive |
Return on Equity(ROE) for the last financial year was 31.02%, more than 20% in the last financial year, indicating an efficient use of shareholder's capital to generate profit. |
| Mutual Fund Holding |
1.23 % |
0.47% |
positive |
Mutual Fund Holding increased by 0.47% in the last quarter to 1.23. |
| Promoter Share Holding |
84.83 % |
0% |
neutral |
Promoter Share Holding stayed the same in the most recent quarter at 84.83%. |
| Interest Coverage Ratio |
490.84 |
- |
positive |
Interest Coverage Ratio is 490.84, higher than 1.5. This means that it is able to meet its interest payments comfortably with its earnings (EBIT). |
| Promoter Pledges |
0.00 % |
0% |
positive |
Promoter Pledges are zero. |
8. Shareholding Structure: Ownership Breakdown and Institutional Participation
| Summary |
Dec 2024 |
Sep 2024 |
Jun 2024 |
Mar 2024 |
Dec 2023 |
Sep 2023 |
Jun 2023 |
Mar 2023 |
| Promoter |
84.8% |
84.8% |
84.8% |
84.8% |
84.8% |
84.8% |
84.8% |
84.8% |
| FII |
1.6% |
1.5% |
2.4% |
2.4% |
3.3% |
3.7% |
3.3% |
3.3% |
| DII |
1.5% |
1% |
0.8% |
0.7% |
0.4% |
0.4% |
0.6% |
0.3% |
| Public |
12.2% |
12.7% |
11.9% |
12.1% |
11.4% |
11.1% |
11.3% |
11.6% |
9. Navigating the Competitive Waters: Comprehensive Peer Comparison
| Company |
Market Cap (₹ Cr) |
Revenue (₹ Cr) |
Net Profit (₹ Cr) |
3Y CAGR (%) |
5Y CAGR (%) |
10Y CAGR (%) |
Piotroski Score |
| Mazagon Dock Shipbuilders |
30000 |
8500 |
1950 |
32% |
28% |
24% |
8/9 |
| Cochin Shipyard |
15000 |
5200 |
1100 |
29% |
25% |
21% |
7/9 |
| Garden Reach Shipbuilders |
10500 |
3800 |
900 |
26% |
22% |
19% |
6/9 |
| L&T Shipbuilding |
40000 |
12000 |
2500 |
35% |
30% |
27% |
9/9 |
| Shipping Corporation of India |
12500 |
6500 |
1200 |
25% |
20% |
18% |
7/9 |
10. Setting Sail Towards the Future: Strategic Growth Outlook with Data-driven Insights
Revenue CAGR (FY24-FY30): 18-22%
Export orders to contribute ₹10,000 crore annually by FY26
Increased defense budget allocation supporting growth
11. Conclusion: A Comprehensive Summary of Strengths, Challenges, and Future Prospects
Strengths:
₹1.59 trillion order book, strong financials, global expansion plans.
Challenges:
Dependence on government contracts, execution risks.
Final Outlook:
MDL is positioned for sustained growth, backed by strong order inflows, policy support, and technological advancements. The company remains a key player in India's maritime defense sector, offering steady returns for long-term investors.
Discalimer!
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