Buy Mazagon Dock Shipbuilders, target price Rs 2,885: Axis Securities

Axis Securities has a buy call on Mazagon Dock Shipbuilders with a target price of Rs 2,885. The current market price of Mazagon Dock Shipbuilders is Rs 2,625.7 The time period given by the analyst is 3-4 weeks when Mazagon Dock price can reach the defined target. Mazagon Dock Shipbuilders, incorporated in 1934, is a Small Cap company with a market cap of Rs 106512.49 crore, operating in the Defence sector.

Mazagon Dock Shipbuilders' key products/revenue segments include Contract Revenue, Sale of Products, Other Operating Revenue, Ship Repairs and Scrap for the year ending 31-Mar-2024.



Financials
For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 3430.06 crore, up 13.91% from last quarter Total Income of Rs 3011.11 crore and up 30.37% from last year same quarter Total Income of Rs 2631.08 crore. The company has reported net profit after tax of Rs 768.22 crore in the latest quarter.

The company's top management includes Mr.Sanjeev Singhal, Mr.Biju George, Mr.Vasudev Puranik, Mrs.Jagjeet Kaur Neeru Singh, Mr.Chandu Sambasiva Rao, Mr.Mallikarjunarao Bhyrisetty, Mr.Dattaprasad Kholkar, Mr.Amit Satija. Company has JCR & Co. as its auditors. As on 31-12-2024, the company has a total of 40 Crore shares outstanding.

Investment Rationale
A strong bullish candlestick confirms that Mazagon Dock Shipbuilders has broken out of a descending triangle pattern at Rs 2,500, thereby confirming the continuation of its medium-term uptrend. The surge in volume at the breakout indicates strong participation from market players, adding conviction to the move. It had been in consolidation since mid-July 2024, and the breakout confirms the end of this phase. The pattern breakout indicates a shift in trend, setting the stage for an extended rally. Trading above its key short- and medium-term moving averages (20, 50, 100, and 200-day) indicates a firm bullish bias. Additionally, the weekly RSI is trending upward, holding above its reference line, reinforcing the positive momentum. Analysis indicates an upside of 2,790- 2,885 levels. The holding period is 3 to 4 weeks.

Promoter/FII Holdings
Promoters held 84.83 per cent stake in the company as of 31-Dec-2024, while FIIs owned 1.55 per cent, DIIs 1.46 per cent.