Mazagon Dock Shipbuilders Stock: Many defense sector companies have given multibagger returns to investors. One of these shares is Mazagon Dock Shipbuilders. However, now there is a possibility of heavy selling in this stock. The advice to sell these shares is coming from local brokerage house ICICI Securities.
Contents
Target price of ₹900
The brokerage has set a price target of ₹900 for the stock. This price represents a huge drop of around 75 percent from the current price of the stock. Let us tell you that on Wednesday, the share price reached the level of 2900 rupees. During the trading, this stock saw an increase of up to 5 percent.
What did the broker say?
A domestic brokerage said – In our view, the stock is already in positive growth given potential orders for submarines and higher margins in the near term. We have Rs. We maintain sell on the stock as per the discounted cash flow (DCF) pattern with a target price of 900.
As orders of ₹1,002 crore were received, investors hit the stocks, with a rush to buy.
One year return
Let us tell you that this stock has given a multibagger return with an increase of 171% in the last year. As for the year 2024, there was an increase of 35.5% in May and 26% in April. The rise preceded two straight months of declines in the stock. There was a decline of 9% in February and 10.5% in March. The stock was flat in January with a marginal gain of 0.4%. The stock is now down 30 percent from its record high of ₹3478 on May 30, 2024. It still returned 170 percent higher than its 52-week low of ₹990.00 on June 8, 2023.
Adani’s stock slumps to ₹84 a share, panic among investors
Better than expected performance in Q4FY24
Mazagon Dock Shipbuilders performed strongly in Q4FY24 with an EBITDA of ₹520 crore. The company won a contract to build 14 Fast Patrol Vessels (FPVs) worth ₹1,070 crore for the Indian Coast Guard. The company’s board has recommended a final dividend of ₹12.11 per share for FY2024.