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India Today
3 days ago
- 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
Time of India
3 days ago
- Business
- Time of India
Mazagon Dock shares in focus as Q1 net profit drops 35% YoY. Should you buy?
Mazagon Dock shares: The state-owned defence firm reported a 35% year-on-year drop in consolidated net profit for the June quarter, coming in at Rs 452 crore versus Rs 696 crore in Q1 FY25. Despite the profit decline, management pointed to strong operational performance and a steady rise in revenue. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Shares of Mazagon Dock Shipbuilders will be in focus on Tuesday after the state-run defence PSU reported a 35% year-on-year (YoY) decline in its consolidated net profit for the June quarter. The company posted a profit of Rs 452 crore for Q1 FY26, compared to Rs 696 crore in the corresponding period last the fall in profit, the management highlighted that the quarter saw solid operating performance and a steady uptick in a sequential basis, however, the company delivered robust growth, with net profit rising nearly 39% from Rs 325 crore reported in Q4 from operations rose 11% YoY to Rs 2,625.6 crore, up from Rs 2,357 crore in Q1 FY25. On a quarter-on-quarter basis, though, revenue declined 17% from Rs 3,174 crore in the preceding three months. The company's total income for the quarter stood at Rs 2,914.9 crore, which includes Rs 289.3 crore in other Dock posted an EBITDA of Rs 793.5 crore for the period, with an EBITDA margin of approximately 30.2%. This performance was supported by lower input costs and a stronger contribution from high-margin the Q1 results, domestic brokerage firm Antique has maintained a 'Buy' rating on Mazagon Dock Shipbuilders and set a target price of Rs 3, brokerage noted that elevated provisions during the recent quarter impacted the company's profit margins. However, follow-on orders for the Scorpene and P75I submarines are expected to strengthen the order book and support mid-term flagged potential delays in order awards as a key risk, while also noting that margin volatility from provision spikes is likely behind. The firm has cut its FY26 earnings per share (EPS) estimate by 8.3%, but left its FY27 estimate largely Tuesday, Mazagon Dock Shipbuilders shares closed 3.4% lower at Rs 2,789.80 on the BSE.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Economic Times
3 days ago
- Business
- Economic Times
Mazagon Dock shares in focus as Q1 net profit drops 35% YoY. Should you buy?
ADVERTISEMENT ADVERTISEMENT ADVERTISEMENT Shares of Mazagon Dock Shipbuilders will be in focus on Tuesday after the state-run defence PSU reported a 35% year-on-year (YoY) decline in its consolidated net profit for the June quarter. The company posted a profit of Rs 452 crore for Q1 FY26, compared to Rs 696 crore in the corresponding period last the fall in profit, the management highlighted that the quarter saw solid operating performance and a steady uptick in a sequential basis, however, the company delivered robust growth, with net profit rising nearly 39% from Rs 325 crore reported in Q4 from operations rose 11% YoY to Rs 2,625.6 crore, up from Rs 2,357 crore in Q1 FY25. On a quarter-on-quarter basis, though, revenue declined 17% from Rs 3,174 crore in the preceding three months. The company's total income for the quarter stood at Rs 2,914.9 crore, which includes Rs 289.3 crore in other Dock posted an EBITDA of Rs 793.5 crore for the period, with an EBITDA margin of approximately 30.2%. This performance was supported by lower input costs and a stronger contribution from high-margin the Q1 results, domestic brokerage firm Antique has maintained a 'Buy' rating on Mazagon Dock Shipbuilders and set a target price of Rs 3, brokerage noted that elevated provisions during the recent quarter impacted the company's profit margins. However, follow-on orders for the Scorpene and P75I submarines are expected to strengthen the order book and support mid-term flagged potential delays in order awards as a key risk, while also noting that margin volatility from provision spikes is likely behind. The firm has cut its FY26 earnings per share (EPS) estimate by 8.3%, but left its FY27 estimate largely Tuesday, Mazagon Dock Shipbuilders shares closed 3.4% lower at Rs 2,789.80 on the BSE.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
New Straits Times
22-07-2025
- Politics
- New Straits Times
Anwar: Critics of judiciary ignore lessons from Reformasi era
SHAH ALAM: Prime Minister Datuk Seri Anwar Ibrahim has criticised those who he said appear ignorant of the nation's political history when commenting on the judiciary. Anwar, who is also PKR president, said those who lived through the Reformasi era understand that the judiciary must remain the country's main pillar and be free from political interference. He cited the works of renowned cartoonist Zulkiflee Anwar Haque, better known as Zunar, whose illustrations chronicled the public outrage during that period over corruption, abuse of power and manipulated court decisions. "Sometimes when people talk about the judiciary, I feel some of them act as if they know nothing at all about history — people who were once complicit in all the oppression and injustice of the past, now wanting to speak about freedom. "On the other hand, for us who lived through it, we believe and we are convinced that the key lesson is that the judiciary, which is the main pillar of the country, should be without political interference, because our experience has shown that we must be more mature as such interference leads to the abuse of the innocent. "The same applies to economic management, such as the Scorpene and 1MDB scandal that was illustrated in in the cartoon," he said during the launch of the book "Melukis dengan Hati: Biografi Perjalanan Seni 50 Tahun" by Zunar here today. Anwar said Zunar's work is important not only in terms of uncovering historical chapters, but also serves as a lesson on what Malaysia must learn from and what is to be avoided. "To save the country, there must be a clear separation of powers and shared responsibility. "If we assume that the judiciary is a noble institution, history has shown that it has, at times, been tainted by corruption and abuse of power. "Likewise, the position of the prime minister or finance minister, even if entrusted to someone believed to carry out their duties well, has, in reality, been misused to amass excessive wealth. "And all of this is captured in Zunar's work," he said.
New Indian Express
10-07-2025
- Business
- New Indian Express
Mazagon Dockyard to finalise two submarine projects this financial year
TNIE on July 7 had reported that "Project 75-India (I) and Project 75 (add-ons) are under advanced stages of the Cost Negotiation being done by the Committee (Cost Negotiation Committee-CNC)." Project 75-India, along with Germany's tkMS (thyssenkrupp Marine Systems), is for the construction of six advanced conventional submarines, with an estimated cost of Rs 70,000 crore. Project 75 (add-ons) is for the construction of three Scorpene-class submarines, costing approximately Rs 36,000 crore. The stipulated delivery timeline to Navy, as per Jamgaonkar, is set at seven years for the first submarine under P-75I after the contract is signed, with the rest at the rate of one per year. As for the indigenised contents, the first submarine under P-75I is planned to have a minimum of 45%, which rises up to 60% in the sixth. Talking about the capability, the MDL can simultaneously build 11 submarines and 10 destroyers, said Commander V Puranik (retd), Director (corporate planning and personnel), MDL. Timeline for the first of the three P75 (add ons) Scorpene submarines will be six years after the contract is signed, Jamgaonkar said. The other two will come one per year thereafter. "MDL is ready and configured for this project. We will hit the ground running as skilled labour is there and the supply chain is in place," he said. It was in January this year that MDL delivered the last of the six Kalvari-class (Scorpene) diesel-electric attack submarines. It included the technology transfer from the French firm, Naval Group, under the Rs 23,500 crore Project 75 (P-75). The last submarine commissioned was INS Vaghsheer. The impetus to P-75I came with tkMS in January being confirmed as the foreign Original Equipment Manufacturer (OEM) partner of the MDL under MoD's Strategic Partnership (SP) model.
