Mazagon Dock Shipbuilders Ltd. saw its shares rise by 20% to ₹4,990 on Thursday, marking gains in seven of the last nine trading sessions. The company’s market capitalisation crossed the ₹1 lakh crore milestone on July 4.
Navratna
This surge follows Mazagon Dock’s recent designation as a ‘Navratna’ by the Department of Public Enterprises, approved in late June. The ‘Navratna’ status is conferred upon public sector undertakings with Miniratna Category I status and consistent outstanding performance. It allows them to invest up to ₹1,000 crore or 15% of their net worth in a single project, as well as engage in joint ventures, alliances, and establish overseas subsidiaries.
Mazagon Dock’s shares have more than doubled in value in 2024, marking a 115% gain. Over the past year, the stock has surged by over 280%.
IPO Details
The company debuted on the stock market in October 2020 with an IPO price of ₹145 per share. Since then, its stock has skyrocketed by more than 3,300% in less than four years.
Mazagon Dock is a government-owned shipbuilder, with the Indian government holding a majority stake of 84.8% as of the March quarter, valued at over ₹85,000 crore.
Mazagon Dock
While domestic mutual funds hold a minimal stake in Mazagon Dock, the company boasts approximately 375,000 small retail shareholders as of the March quarter.
Three out of four analysts covering Mazagon Dock have rated the stock as ‘buy’, with one recommending ‘sell’. Despite positive sentiment, the average 12-month analyst price target suggests a potential downside of 82%.
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