Mazagon Dock Share Price Target 2023, 2024, 2025, 2027 and 2030

Mazagon Dock Shipbuilders Ltd. (MDL) is a leading shipbuilding company in India, with a monopoly in the construction of warships and submarines for the Indian Navy and Coast Guard. In this blogpost, we will look at Mazagon Dock Share Price Target 2023, 2024, 2025, 2027 and 2030.

Mazagon Dock has a rich history of over 80 years and has delivered 801 vessels, including 27 warships and 7 submarines, since its inception. The company is also engaged in the fabrication of offshore platforms and associated support vessels for the oil and gas sector.

MDL is a public sector undertaking under the Ministry of Defense, with the Government of India holding an 84.83% stake in the company.

Consider reading: Top 20 Monopoly Stocks in India

Mazagon Dock Share Price Target 2023, 2024, 2025, 2027 and 2030

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Mazagon Dock Share Price Target 2023

For the year 2023, Mazagon Dock’s share price is projected to lie between a minimum of ₹2,000 and a maximum of ₹2,500. The average price target for the same year is set at ₹2,250.

Mazagon Dock Share Price Target 2024

For the year 2024, Mazagon Dock’s share price is projected to lie between a minimum of ₹2,500 and a maximum of ₹3,125. The average price target for the same year is set at ₹2,813.

Mazagon Dock Share Price Target 2025

For the year 2025, Mazagon Dock’s share price is projected to lie between a minimum of ₹3,125 and a maximum of ₹3,906. The average price target for the same year is set at ₹3,516.

Mazagon Dock Share Price Target 2030

For the year 2030, Mazagon Dock’s share price is projected to lie between a minimum of ₹9,537 and a maximum of ₹11,921. The average price target for the same year is set at ₹10,729.

Current Competitors of Mazagon Dock

Mazagon Dock faces competition from both domestic and foreign players in the shipbuilding industry. Some of the major competitors are:

• Cochin Shipyard Ltd. (CSL): CSL is another public sector shipbuilder that caters to both defence and commercial sectors. CSL has built and delivered aircraft carriers, frigates, corvettes, patrol vessels, fast attack crafts, offshore support vessels, tankers, bulk carriers, passenger ships and ferries. CSL also has a joint venture with Samsung Heavy Industries to build LNG carriers.
• Garden Reach Shipbuilders & Engineers Ltd. (GRSE): GRSE is a public sector shipbuilder that specializes in building warships for the Indian Navy and Coast Guard. GRSE has built and delivered stealth frigates, anti-submarine warfare corvettes, landing craft utility ships, water jet fast attack crafts, survey vessels, offshore patrol vessels and hovercrafts.
• L&T Shipbuilding Ltd. (LTSB): LTSB is a private sector shipbuilder that is a subsidiary of Larsen & Toubro Ltd., a diversified engineering conglomerate. LTSB has built and delivered offshore patrol vessels, interceptor boats, floating docks, jack-up rigs, platform supply vessels and defence ships. LTSB also has a joint venture with Navantia of Spain to build landing platform docks.
• Reliance Naval and Engineering Ltd. (RNEL): RNEL is a private sector shipbuilder that is a part of Reliance Group, a business conglomerate. RNEL has built and delivered offshore patrol vessels, naval offshore patrol vessels, cadet training ships, survey vessels and fast patrol vessels. RNEL also has a joint venture with Dassault Aviation of France to manufacture parts for Rafale fighter jets.
• Hindustan Shipyard Ltd. (HSL): HSL is a public sector shipbuilder that mainly caters to the defence sector. HSL has built and delivered destroyers, frigates, corvettes, offshore patrol vessels, fleet tankers, landing ships, submarines and submarine refits.

Growth Opportunities for Mazagon Dock

MDL has several growth opportunities in the domestic and international markets, driven by the following factors:

• Increasing defence budget: The Government of India has increased the defence budget by 13% year on year to Rs 5.94 lakh crore for the 2023-24 period from Rs 5.25 lakh crore in 2022-23. This reflects the government’s commitment to strengthen the national security and modernize the armed forces.
• Rising naval requirements: The Indian Navy has ambitious plans to expand its fleet size from the current 140 ships to 200 ships by 2027. This includes acquiring new aircraft carriers, destroyers, frigates, corvettes, submarines, amphibious ships and support vessels. MDL is well positioned to cater to these requirements as it has proven capabilities and experience in building complex warships and submarines.
• Indigenization initiatives: The Government of India has launched several initiatives to promote indigenization and self-reliance in the defence sector under the ‘Make in India’, ‘Atmanirbhar Bharat’ and ‘Defence Production Policy’ schemes. These include banning or restricting imports of certain defence items, offering incentives for domestic production, encouraging private sector participation and fostering innovation and research and development. MDL stands to benefit from these initiatives as it has a high degree of indigenization in its products and processes.
• Export potential: MDL has also explored opportunities to export its products and services to friendly foreign countries. MDL has received enquiries from countries such as Myanmar, Bangladesh, Sri Lanka, Vietnam, Indonesia and Mauritius for various types of ships and submarines. MDL has also signed agreements with some foreign entities for providing ship repair services.

Mazagon Dock Company Financials

The table below summarizes some key financial indicators of MDL for the last five years.

Mazagon Dock Financial Summary (Mar 2019 – Mar 2023)

1. Sales: There’s a progressive increase in sales, starting from 4,614 in Mar 2019 and reaching 7,827 in Mar 2023. This signifies an overall growth of about 69.7% over the five-year period.
2. Expenses: Expenses have also increased over the years, moving from 4,353 in Mar 2019 to 7,027 in Mar 2023, marking a growth of approximately 61.5%.
3. Operating Profit: From a slight dip between 2019 to 2021, the operating profit rose significantly from 226 in Mar 2021 to 801 in Mar 2023.
4. OPM% (Operating Profit Margin): The OPM% has seen growth over the years. Starting at 6% in Mar 2019, it peaked at 10% in Mar 2023. This means the company is becoming more efficient in generating profit from its operations.
5. Other Income: The other income has been fluctuating over the years but saw a jump from 420 in Mar 2022 to 713 in Mar 2023.
6. Interest: Interest expenses have dropped significantly from 36 in Mar 2019 to just 9 in Mar 2023, indicating the company might have reduced its debts or secured better loan terms.
7. Depreciation: There’s a mild upward trend in depreciation, with a minor peak at 76 in Mar 2023.
8. Profit Before Tax (PBT): After a decline till Mar 2021, PBT has seen robust growth, with the highest at 1,429 in Mar 2023.
9. Tax %: The tax rate witnessed a spike in Mar 2020 at 46%, but then it stabilized around 24%-25% for the following years.
10. Net Profit: The company’s net profit showed impressive growth, particularly from Mar 2021 (480) to Mar 2023 (1,073) – a growth of approximately 123.5% in two years.
11. EPS (Earnings Per Share): Consistent with the net profit, the EPS saw a significant increase, reaching its highest at 53.19 in Mar 2023.
12. Dividend Payout %: This has seen fluctuations. It was highest at 53% in Mar 2020 but later stabilized at 30% for the subsequent years.

In conclusion, Mazagon Dock has shown substantial financial growth over the five-year period, especially from Mar 2021 to Mar 2023. The company’s improved operational efficiency, reduced interest expenses, and consistent dividend payout make it an entity to observe in subsequent years.

Risks in the Future for Mazagon Dock

MDL faces several risks and challenges in its business operations, which could adversely affect its growth prospects and profitability. Some of these are:

• Execution delays: MDL operates in a complex and dynamic environment that involves multiple stakeholders, regulatory approvals, technical specifications, quality standards and contractual obligations. Any delay or disruption in the execution of its projects due to factors such as design changes, supply chain issues, labour unrest, accidents, natural calamities or force majeure events could result in cost overruns, penalties, litigation or cancellation of orders.
• Competition: MDL faces competition from both domestic and foreign players in the shipbuilding industry. Some of its competitors may have better technology, financial resources, operational efficiency or customer relationships than MDL. MDL may also face competition from new entrants or existing players who may diversify into the defence sector. MDL may lose its market share or pricing power if it fails to match or exceed the offerings of its competitors.
• Dependence on government: MDL is primarily dependent on the Ministry of Defence for its defence orders and has mostly been awarded such orders on a nomination basis by the Ministry of Defence for use by the Indian Navy and Coast Guard. Any change in the government policies, priorities, budget allocations or procurement procedures could affect the demand for MDL’s products and services. MDL may also face delays or difficulties in receiving payments from the government due to bureaucratic hurdles or fiscal constraints.
• Currency fluctuations: MDL is exposed to risks arising from currency exchange rate fluctuations, which could adversely affect its business, financial condition and results of operations. MDL imports some of its raw materials, components and equipment from foreign suppliers and pays them in foreign currencies. MDL also exports some of its products and services to foreign customers and receives payments in foreign currencies. Any appreciation or depreciation of the Indian rupee against these foreign currencies could impact the cost or revenue of MDL.
• Technology obsolescence: MDL operates in a highly competitive and dynamic industry that requires constant innovation and upgradation of technology. MDL may face technological obsolescence if it fails to keep pace with the changing customer requirements, industry trends or global standards. MDL may also face difficulties in acquiring or developing new technologies due to intellectual property rights issues, high costs or lack of skilled manpower.

Final Thoughts on Mazagon Dock Share Price Target 2023, 2024, 2025, 2027 and 2030

MDL is a monopoly stock in India that has a dominant position in the shipbuilding industry. The company has a strong order book, a high degree of indigenization, and a favorable growth outlook.

The Mazagon Dock Share Price Target provided in this blog post assumes various financial parameters, company performance, and external factors.

However, the company also faces several risks and challenges that could hamper its performance and profitability. Investors should weigh the pros and cons of investing in this stock before making any decision.

Consider reading: IRFC Share Price Target

FAQs on Mazagon Dock Share Price Target 2023, 2024, 2025, 2027 and 2030

What is Mazagon Dock Share Price Target 2023?

For the year 2023, Mazagon Dock’s share price is projected to lie between a minimum of ₹2,000 and a maximum of ₹2,500. The average price target for the same year is set at ₹2,250.

What is Mazagon Dock Share Price Target 2024?

In 2024, the anticipated share price of Mazagon Dock is expected to range from ₹2,500 at its lowest to ₹3,125 at its peak, with an average projection set at ₹2,813.

What is Mazagon Dock Share Price Target 2025?

For 2025, Mazagon Dock’s expected share price is forecasted to range from ₹3,125 as the base to a high of ₹3,906, with a median estimate positioned at ₹3,516.

What is Mazagon Dock Share Price Target 2030?

In 2030, it’s anticipated that the share price for Mazagon Dock will fluctuate between a low of ₹9,537 and a high of ₹11,921, with the mean projection pinpointed at ₹10,729.