Mazagon Dock Shipbuilders Stock Surges 8.7% as Board to Discuss Stock Split and Interim Dividend – Latest on PSU Defence Stocks

Mazagon Dock Shipbuilders’ stock jumped by 8.7% to ₹4,608 on Friday, October 18, after the company announced that its board would consider a stock split and an interim dividend for the financial year 2024-25.

The Board of Directors is set to meet on Tuesday, October 22, 2024, to discuss these plans. In an official filing, the company stated, “A meeting of the Board of Directors of Mazagon Dock Shipbuilders Limited is scheduled on Tuesday, October 22, 2024, to consider the declaration of an interim dividend for 2024-25 and a stock split as per Section 61(1)(d) of the Companies Act, 2013.”

Mazagon Dock has also set Wednesday, October 30, 2024, as the record date for the interim dividend, subject to board approval.

The company has been making positive news recently. On October 10, it secured a contract worth ₹1.22 billion from Maharashtra State Power Generation (MAHAGENCO). In late September, Mazagon Dock began production of its first multipurpose cargo vessel for Navi Merchants in Denmark. It also won a ₹14.86 billion contract from Oil and Natural Gas (ONGC) for replacing subsea pipelines.

Additionally, in September, India’s Ministry of Defence approved military equipment purchases worth ₹1.45 trillion (about $17.27 billion).

Though the company’s stock has recovered by 17.14% in the last nine trading sessions, it remains 21.6% below its all-time high of ₹5,859 per share, reached in July. After a strong rally between March 2023 and July 2024, the stock saw some profit booking in recent months.

Mazagon Dock, a key public-sector defence shipbuilder under the Ministry of Defence, specialises in building ships, submarines, and other engineering products. Since it was founded in 1934, the company has delivered 802 vessels, including 28 warships and 7 submarines. In June, it was awarded Navratna status by the Department of Public Enterprises.