Buy Mazagon Dock Shipbuilders, target price Rs 560: ICICI Direct

ICICI Direct has buy call on Mazagon Dock Shipbuilders with a target price of Rs 560. The current market price of Mazagon Dock Shipbuilders is Rs 452.05. Time period given by analyst is one year when Mazagon Dock Shipbuilders Ltd. price can reach defined target.

Mazagon Dock Shipbuilders Ltd., incorporated in the year 1934, is a Small Cap company (having a market cap of Rs 8888.48 Crore) operating in Defence sector.

Mazagon Dock Shipbuilders Ltd. key Products/Revenue Segments include Ship Construction, Sale of Products, Ship Repairs, Scrap and Other Operating Revenue for the year ending 31-Mar-2021.



Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 2366.46 Crore, up 55.13 % from last quarter Total Income of Rs 1525.45 Crore and up 81.71 % from last year same quarter Total Income of Rs 1302.32 Crore. Company reported net profit after tax of Rs 217.02 Crore in latest quarter.

Investment Rationale
MDL’s execution capability is set to improve in the coming period led by increasing indigenisation of platforms and sub-systems. Next two year’s revenue CAGR is expected at 18.2% vs. 7.5% CAGR in FY19-22. FY24E margin is set to improve substantially led by positive operating leverage

Promoter/FII Holdings
Promoters held 84.83 per cent stake in the company as of 30-Jun-2022, while FIIs owned 2.47 per cent, DIIs 1.14 per cent.