Latest news with #MazagonDockShipbuildersLtd
India Today
29-07-2025
- Business
- India Today
Explained: Why Mazagon Dock share price tumbled 5% after Q1 results
Shares of Mazagon Dock Shipbuilders Ltd (MDL) fell over 5% in early trade on Tuesday after the state-owned defence shipbuilder reported its June quarter earnings. While revenue rose 11.4% year-on-year, the Street was left stock was down 4.50% to Rs 2,664.25 on the Bombay Stock Exchange (BSE) at 10:34 am. In a month, the stock has tumbled 18%, still up almost 19% this biggest concern was a 53% year-on-year drop in standalone EBITDA, which came in significantly below expectations. Analysts blamed elevated provisioning—now a recurring issue—as the main drag on margins. These provisions, typically made for liquidated damages, warranty claims, and project-related risks, weighed heavily on profits for the second straight quarter. Despite the Q1 miss, brokerages remain positive on MDL's long-term outlook. Nirmal Bang and Antique Stock Broking have both maintained their 'Buy' ratings, citing the company's strong fundamentals and a robust pipeline of upcoming defence contracts. Nirmal Bang expects the company to deliver a 21% compound annual growth rate in revenue, 22% in EBITDA, and 17% in net profit between FY25 and FY27. It has set a target price of Rs 3,540, valuing the stock at 45 times projected June 2027 of that optimism is tied to MDL's chances of bagging large submarine contracts under the P75 and P75I programmes. If secured, these could grow the company's order book from Rs 32,000 crore to more than Rs 1.25 lakh crore. Nirmal Bang also pointed to efficiency initiatives like Shipyard 4.0 and broader digitisation efforts as drivers of future margin Stock Broking, while trimming its FY26 earnings estimate by 8.3% to account for near-term provisioning impact, has kept its target price unchanged at Rs 3,858. It expects provisioning to normalise from the September quarter and even sees scope for some reversals. Antique believes MDL's position in submarine manufacturing is unmatched and that the company stands to gain significantly from India's naval modernisation biggest near-term trigger could be the expected award of three additional Scorpene submarines, which may be granted to MDL on a nominated basis. This alone could double its current order book. Also in the pipeline are the Rs 70,000 crore P75I submarine project and the similarly sized P17B stealth frigate with the stock trading at about 33.8 times one-year forward earnings—well above its historical average—investors appear to be booking profits on any signs of a slip. Two straight quarters of margin pressure and a lack of management guidance may have pushed some to the the structural story remains intact. MDL's proven track record, strategic role in India's defence ecosystem, and expanding order visibility continue to make it a long-term story to watch.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- Ends
New Indian Express
08-07-2025
- Business
- New Indian Express
Indigenous frigate INS Mahendragiri to join Indian Navy in early 2026
MUMBAI: India's push towards indigenising the production of capital warships—large, heavily armed vessels—has gained momentum, with all Project 17A Nilgiri-class stealth frigates progressing on schedule. Mazagon Dock Shipbuilders Additional General Manager Jay Varghese told The New Indian Express on Tuesday that the last of the class, Mahendragiri, will be delivered to the Indian Navy by February 2026. 'We have the Mahendragiri ship, which is the fourth and final vessel of the P-17 Alpha class of stealth ships being built at Mazagon Dock. This class of ships will certainly add significant strength to the Indian Navy, as they are the most modern and come equipped with integrated surface-to-surface, surface-to-air, and underwater capabilities,' Varghese said. A total of seven frigates are being constructed under Project 17A (Nilgiri class). The vessel will be commissioned as Indian Naval Ship (INS) Mahendragiri, and is being constructed at Mazagon Dock Shipbuilders Ltd in Mumbai. Outlining the ship's combat systems, Varghese said, 'Equipped with advanced air defence systems, BrahMos and Barak missiles, torpedoes, rocket launchers, and AK-630 guns, it can strike air, surface, and underwater targets. An integral helicopter will enhance its capabilities.' Of the seven frigates, INS Nilgiri was commissioned into the Navy in January by Prime Minister Narendra Modi. INS Nilgiri is the lead ship of the class and was built by Mazagon Dock Shipbuilders Ltd (MDL). Project 17A frigates are guided missile platforms, each 149 metres in length with a displacement of around 6,670 tonnes and a top speed of 28 knots. The Indian Navy had placed orders for seven such vessels—four with MDL and three with Garden Reach Shipbuilders and Engineers (GRSE). The remaining five ships under Project 17A are at various stages of construction at MDL, Mumbai and GRSE, Kolkata. All are expected to be delivered by the end of 2026. Udaygiri was delivered on 1 July. Commissioning typically takes place one to two months after delivery. The indigenous content in these warships is now around 75 percent, with the remaining 25 percent comprising imported components including gas turbines (from GE, US), multi-function surveillance and guidance radar (Israel), and the Barak surface-to-air missile system (jointly developed by India and Israel). The New Indian Express had earlier reported that these multi-mission frigates are designed for operations in a blue-water environment, capable of addressing both conventional and asymmetric threats in areas critical to India's maritime interests. Udaygiri is named after its predecessor, the erstwhile INS Udaygiri, a steam-powered vessel that was decommissioned on 24 August 2007 after 31 years of service. Project 17A ships are fitted with enhanced stealth features and state-of-the-art weapons and sensors, representing a significant upgrade from the preceding P17 class. The project also showcases the Indian Navy's improved in-house design capabilities through its Warship Design Bureau. The ships are built using 'integrated construction' methods, which involve extensive outfitting during block assembly to reduce build times. Udaygiri was delivered in a record 37 months from its launch. These warships feature a Combined Diesel or Gas (CODOG) propulsion system comprising both diesel engines and gas turbines, with controllable pitch propellers on each shaft. The vessels are also equipped with a state-of-the-art Integrated Platform Management System (IPMS). Their weapon suite includes supersonic surface-to-surface missiles, medium-range surface-to-air missiles, a 76 mm main gun, and a mix of 30 mm and 12.7 mm rapid-fire close-in weapon systems.
Indian Express
01-07-2025
- Business
- Indian Express
Tamal, last foreign-made warship, commissioned; Udaygiri delivered
The Navy commissioned INS Tamal, a Russian-manufactured guided missile frigate that also features dual role BrahMos supersonic cruise missiles, into the force Tuesday. It is the last warship to be inducted from a foreign source in the backdrop of India's push to achieve self-reliance in defence. Additionally, Yard 12652 (Udaygiri), the second ship of Project 17A stealth frigate built at Mazagon Dock Shipbuilders Ltd (MDSL) in Mumbai, was delivered, the Navy said in a statement. INS Tamal's commissioning ceremony was held at Yantar shipyard in Russia's Kaliningrad, where it was built. The ship will soon embark for her homeport of Karwar in Karnataka, the Navy said. 'INS Tamal is a formidable moving fortress at sea and is designed for blue water operations across the spectrum of naval warfare in all four dimensions — air, surface, underwater and electromagnetic,' the Navy said. INS Tamal is the eighth multi-role stealth frigate in Project 1135.6 — a series of frigates built by Russia for the Indian Navy — and the second of the additional follow-on Tushil class of ships. The first ship of Tushil class (INS Tushil) was commissioned in December last year. The seven Project 1135.6 ships inducted thus far are part of the Western Fleet, 'The Sword Arm' of the Navy under the Western Naval Command. INS Tamal has a crew of about 250 sailors and 26 officers and is commanded by Captain Sridhar Tata, a gunnery and missile warfare specialist. The ship is equipped with dual role BrahMos supersonic cruise missiles, vertically launched surface-to-air missiles with extended ranges, the standard 30 mm Close in Weapon System, the 100 MM Main gun and very potent ASW rockets and heavyweight torpedoes. Udaygiri, meanwhile, is the second among the seven Project 17A frigates under construction at MDSL, Mumbai and Garden Reach Shipbuilders and Engineers Ltd, Kolkata. Project 17A is a follow-on to Shivalik class (Project 17) frigates active in service. As per Navy, P-17A ships have enhanced stealth features and fitted with 'State of the Art' weapons and sensors, including supersonic surface-to-surface, and medium-range surface-to-air missile systems.
Mint
18-06-2025
- Business
- Mint
Mazagon Dock investors should not get swayed by narrative and newsflow
Mazagon Dock Shipbuilders Ltd's shares rose 5% on Tuesday to ₹3,306. This is the first significant bounce after the stock dropped almost every day from its all-time high of ₹3,775 seen in May, just before the dismal March quarter (Q4FY25) results were declared. What might have rekindled some interest in the stock is JM Financial's note indicating a medium probability that the stock may be included in the MSCI India Index. The index rebalancing may be announced on 7 August. Investors must be cautious of the news flow and narrative surrounding the Mazagon stock, which is being viewed as a defence sector play. However, this does not necessarily mean superior profitability versus the global shipbuilding industry. Management has clarified that their sustainable profitability margin will be in line with the global shipbuilding industry at about 15% at the profit before tax (PBT) level. Also Read: Tata Motors' JLR navigates a tougher road in FY26 Management has guided for about 10% growth in revenue for FY26, which comes to about ₹12,500 crore and PBT of ₹2,000 crore based on the margin guidance. After accounting for corporate tax at 25%, net profit after tax should be about ₹1,500 crore. But it must be noted that Mazagon's PBT margins for FY25 and FY24 are in the range of 23-24%, far above the guidance of 15%. So, it is likely that the company may well report higher margins in FY26, too. Nirmal Bang Institutional Equities has estimated Mazagon's FY26 net profit at ₹2,904 crore. At the current market capitalization of ₹1.3 trillion, this translates into a price-to-earnings ratio of around 45x, which isn't cheap. Perhaps then, the Street is looking at a narrative of how the order book is going to expand multifold. No guarantees Mazagon expects the order book to grow from ₹32,000 crore at FY25 end to ₹1.3 trillion by FY26 on the back of contracts for additional submarines in the Project 75-AS and Project -75 (I) categories. The order book to annual revenue ratio translates into almost 10x FY25 sales, which means strong revenue visibility. Also Read: Juniper Hotels' ambitious growth targets fail to excite investors Mazagon has the technical capabilities to execute a large order book. But it does not guarantee healthy profitability, going by the recent history of provisioning for losses in certain contracts. The company anticipates losses in the contracts for the supply of fast patrol vessels (FPV) to the Indian Coast Guard and also to Denmark. As a result, its provisions have jumped up to ₹747 crore in FY25 from ₹169 crore in FY24. The extent of actual loss will be reviewed in the future, and the provisions will be adjusted accordingly. Amid this, Mazagon continues to focus on the profitable segment of submarines, wherein it has expanded capacity from the construction of 6 submarines to 11. Besides submarines, it will also be able to build 10 major warships as it has acquired land for ship projects. The additional facilities would require capital expenditure of ₹4,000 crore. Even though Mazagon has an agreement with the US Navy for repairing ships, it does not have the infrastructure to handle large ships. So, it will only look for contracts to repair ships that are compatible in size with its shipyard. Also Read: Office space demand gets a push from domestic firms More order announcements are likely in the future, but there could be a long gap before order wins translate into actual revenue. For e.g. the delay in the design and finalization of submarine models would mean Project 75-AS revenues would begin reflecting in revenue only in FY28. Investors would do well to ignore the noise and focus on the valuation that captures most of the near-term positives.
Yahoo
02-06-2025
- Business
- Yahoo
Mazagon Dock Shipbuilders Ltd (BOM:543237) Q4 2025 Earnings Call Highlights: Record Revenue and ...
Release Date: May 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Mazagon Dock Shipbuilders Ltd (BOM:543237) reported the highest revenue from operations at 11,431 crores, indicating strong financial performance. The company has a robust order book, expected to increase significantly with upcoming contracts for P75 additional submarines and P75I submarines. Mazagon Dock Shipbuilders Ltd (BOM:543237) is expanding its capacity to construct 11 submarines and 10 major warships simultaneously, indicating growth potential. The company is diversifying its client base, securing significant contracts from ONGC and a European client, reducing dependency on the Ministry of Defense. Mazagon Dock Shipbuilders Ltd (BOM:543237) is poised to benefit from global shipbuilding trends and geopolitical tailwinds, potentially increasing future orders. The company has made provisions for potential losses on two contracts due to increased costs, impacting profitability. Revenue growth is expected to slow down temporarily as new large contracts take time to execute. The company's EBITDA margin guidance is conservative at 15%, despite achieving higher margins in recent quarters. Subcontracting and outsourcing costs have increased, impacting overall expenses. There are uncertainties and delays in signing major contracts, which could affect the order book and revenue recognition timelines. Warning! GuruFocus has detected 6 Warning Sign with BOM:543237. Q: Over the next 2-3 years, what kind of EBITDA margin should we expect? Will the current level of EBITDA margins be maintained or increased? A: The MDL expects margins and profitability to significantly improve as major orders materialize. We anticipate signing the P75 additional submarines and P75 submarines contract this financial year, which will increase our order book significantly. These projects, along with efficiency initiatives, are expected to enhance overall profitability. (Captain Jag Mohan, Chairman and Managing Director) Q: Can we expect similar revenue growth over the next 2-3 years, or will it slow down due to large contract execution? A: While we have seen a 20% growth year-on-year, the order book for new projects is delayed, which may affect immediate growth. However, we expect a growth rate of around 8-10% annually as new projects progress. (Ruchi Ragarwal, Director of Finance and CFO) Q: Are there any plans to list Goa Shipyard Limited, in which the company holds a substantial stake? A: The decision to list Goa Shipyard Limited is up to the government, as they hold a majority stake. We will continue as shareholders based on government guidelines. (Captain Jag Mohan, Chairman and Managing Director) Q: What is the expected capacity increase over the next 3-4 years? A: We have augmented our capacity to construct 11 submarines and 10 major warships simultaneously. We are also planning significant CapEx to further increase capacity, potentially doubling it once fully operational. (Captain Jag Mohan, Chairman and Managing Director) Q: What is the status of the P75I submarine project? A: Our technical offer has been accepted, and we are in the early phases of commercial negotiations. Once these conclude, the contract will be signed. (Captain Jag Mohan, Chairman and Managing Director) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Effettua l'accesso per consultare il tuo portafoglio
