Mazagon Dock Share Price Target 2024, 2025, 2027, 2030 and Prediction – MAZDOCK
Mazagon Dock Shipbuilders Ltd. (MAZDOCK) 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 2024, 2025, 2026, 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.
In this blog post, we will also look at Mazagon Dock Strengths, Growth opportunities, competitors, SWOT analysis, and risks in the future.
Consider reading: Top 20 Monopoly Stocks in India
Page Contents
Mazagon Dock Share Price Target 2024, 2025, 2027, 2030
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2024 | ₹2,500 | ₹3,125 | ₹2,813 |
| 2025 | ₹3,125 | ₹3,906 | ₹3,516 |
| 2026 | ₹3,906 | ₹4,883 | ₹4,395 |
| 2027 | ₹4,883 | ₹6,104 | ₹5,493 |
| 2028 | ₹6,104 | ₹7,629 | ₹6,866 |
| 2029 | ₹7,629 | ₹9,537 | ₹8,583 |
| 2030 | ₹9,537 | ₹11,921 | ₹10,729 |
| 2031 | ₹11,921 | ₹14,901 | ₹13,411 |
| 2032 | ₹14,901 | ₹18,626 | ₹16,764 |
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MAZDOCK Dock Share Buy or Sell?
Mazagon Dock Share Price Target 2024
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2024 | ₹2,500 | ₹3,125 | ₹2,813 |
Mazagon Dock Share Price Target 2024: For the year 2024, Mazagon Dock share price target is 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
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2025 | ₹3,125 | ₹3,906 | ₹3,516 |
Mazagon Dock Share Price Target 2025: For the year 2025, Mazagon Dock share price target is 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 2026
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2026 | ₹3,906 | ₹4,883 | ₹4,395 |
Mazagon Dock Share Price Target 2026: For the year 2026, Mazagon Doc share price target is between a minimum of ₹3,906 and a maximum of ₹4,883. The average price target for the same year is set at ₹4,395.
Mazagon Dock Share Price Target 2030
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2030 | ₹9,537 | ₹11,921 | ₹10,729 |
Mazagon Dock Share Price Target 2030: For the year 2030, Mazagon Dock share price target is 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.
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Mazagon Dock Share Price Live Chart and History
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): As a significant public sector shipbuilder, CSL adeptly serves both defense and commercial sectors. Their expertise is reflected in their extensive portfolio which includes the construction and delivery of aircraft carriers, frigates, corvettes, patrol vessels, fast attack crafts, and offshore support vessels. CSL also engages in the commercial realm with tankers, bulk carriers, passenger ships, and ferries. Furthermore, CSL’s collaborative venture with Samsung Heavy Industries for building LNG carriers underscores its commitment to expanding its technological capabilities.
- Garden Reach Shipbuilders & Engineers Ltd. (GRSE): GRSE, another influential public sector shipbuilder, is specialized in manufacturing advanced warships for the Indian Navy and Coast Guard. Their achievements include the delivery of stealth frigates, anti-submarine warfare corvettes, landing craft utility ships, water jet fast attack crafts, survey vessels, offshore patrol vessels, and hovercrafts, highlighting their integral role in enhancing India’s maritime defense infrastructure.
- L&T Shipbuilding Ltd. (LTSB): Operating in the private sector, LTSB is a subsidiary of the diversified engineering giant Larsen & Toubro Ltd. The company has made significant strides in building offshore patrol vessels, interceptor boats, floating docks, jack-up rigs, platform supply vessels, and defense ships. Their international collaboration with Navantia of Spain, through a joint venture to build landing platform docks, demonstrates LTSB’s global aspirations and innovative edge.
- Reliance Naval and Engineering Ltd. (RNEL): As part of the Reliance Group, RNEL represents a formidable force in the private shipbuilding sector. Their portfolio includes the construction and delivery of offshore patrol vessels, naval offshore patrol vessels, cadet training ships, survey vessels, and fast patrol vessels. RNEL’s joint venture with Dassault Aviation of France, for manufacturing parts for Rafale fighter jets, further exemplifies their diversified capabilities and strategic partnerships.
- Hindustan Shipyard Ltd. (HSL): HSL, predominantly catering to the defense sector, is a key public sector shipbuilder. Their contributions include building and delivering destroyers, frigates, corvettes, offshore patrol vessels, fleet tankers, landing ships, submarines, and undertaking submarine refits, playing a crucial role in supporting and advancing India’s naval defense capabilities.
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Growth Opportunities for Mazagon Dock
MDL has several growth opportunities in the domestic and international markets, driven by the following factors:
- Enhanced Defence Budget: Reflecting the Government of India’s dedication to bolster national security and modernize the armed forces, there has been a substantial increase of 13% in the defence budget for the fiscal year 2023-24, amounting to ₹5.94 lakh crore, up from ₹5.25 lakh crore in the previous year.
- Evolving Naval Ambitions: The Indian Navy’s strategic plan to augment its fleet from the current 140 to 200 ships by 2027 presents a substantial opportunity for MDL. The expansion includes acquiring new aircraft carriers, destroyers, frigates, corvettes, submarines, amphibious ships, and support vessels. MDL’s established expertise and experience in crafting complex warships and submarines make it a prime candidate to fulfill these requirements.
- Indigenization and Self-Reliance Efforts: The Indian government’s commitment to indigenization and self-reliance in the defence sector, as part of the ‘Make in India’, ‘Atmanirbhar Bharat’, and ‘Defence Production Policy’ initiatives, opens up significant avenues for MDL. Policies aimed at reducing dependence on foreign imports, stimulating domestic production, and enhancing private sector involvement, along with a focus on innovation and R&D, align well with MDL’s high levels of indigenization in its products and processes.
- Export Opportunities: MDL is actively exploring export avenues, with inquiries from countries like Myanmar, Bangladesh, Sri Lanka, Vietnam, Indonesia, and Mauritius for various naval vessels and submarines. The company has also forged agreements with international entities to offer ship repair services, further expanding its global footprint.
In summary, MDL is strategically placed to leverage these opportunities and play a pivotal role in India’s growing defence sector, contributing to both national security and economic growth.
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Mazagon Dock Company Financials
The table below summarizes some key financial indicators of MDL for the last five years.
| Financial Header | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 |
|---|---|---|---|---|---|
| Sales | 4,614 | 4,905 | 4,048 | 5,733 | 7,827 |
| Expenses | 4,353 | 4,642 | 3,822 | 5,292 | 7,027 |
| Operating Profit | 261 | 263 | 226 | 441 | 801 |
| OPM % | 6% | 5% | 6% | 8% | 10% |
| Other Income | 664 | 600 | 474 | 420 | 713 |
| Interest | 36 | 36 | 11 | 14 | 9 |
| Depreciation | 64 | 69 | 60 | 75 | 76 |
| Profit before tax | 825 | 758 | 630 | 773 | 1,429 |
| Tax % | 37% | 46% | 24% | 24% | 25% |
| Net Profit | 517 | 408 | 480 | 586 | 1,073 |
| EPS in Rs | 23.08 | 20.25 | 23.78 | 29.08 | 53.19 |
| Dividend Payout % | 19% | 53% | 30% | 30% | 30% |
Mazagon Dock Financial Summary (Mar 2019 – Mar 2023)
- 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.
- 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%.
- 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.
- 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.
- 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.
- 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.
- Depreciation: There’s a mild upward trend in depreciation, with a minor peak at 76 in Mar 2023.
- Profit Before Tax (PBT): After a decline till Mar 2021, PBT has seen robust growth, with the highest at 1,429 in Mar 2023.
- Tax %: The tax rate witnessed a spike in Mar 2020 at 46%, but then it stabilized around 24%-25% for the following years.
- 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.
- EPS (Earnings Per Share): Consistent with the net profit, the EPS saw a significant increase, reaching its highest at 53.19 in Mar 2023.
- 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.
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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:
- Project Execution Delays: Operating in a complex environment involving numerous stakeholders, regulations, and quality standards, MDL is susceptible to delays caused by design changes, supply chain disruptions, labor issues, accidents, or unforeseeable events like natural disasters. These delays can lead to cost overruns, penalties, litigation, or even order cancellations.
- Intense Competition: MDL competes with both domestic and international shipbuilding firms. Some competitors may surpass MDL in technology, financial strength, operational efficiency, or customer relations. Additionally, new entrants or existing companies diversifying into the defence sector could erode MDL’s market share or bargaining power if MDL does not maintain or improve its competitive offerings.
- Reliance on Government Contracts: A significant portion of MDL’s business depends on orders from the Ministry of Defence, often awarded on a nomination basis. Changes in government policies, budgetary allocations, or procurement processes could affect the demand for MDL’s offerings. Payment delays or bureaucratic challenges could also arise due to government-related fiscal or administrative issues.
- Currency Exchange Risks: MDL’s financial health is vulnerable to currency exchange rate fluctuations. As the company imports certain materials and equipment in foreign currencies and also exports products, any significant change in the value of the Indian rupee against these currencies can adversely affect MDL’s costs and revenues.
- Technology Obsolescence: In an industry that demands continual innovation and technological advancement, MDL faces the risk of falling behind if it does not keep up with evolving customer needs, industry trends, and global standards. Challenges in acquiring or developing new technologies, due to intellectual property constraints, high costs, or a lack of skilled personnel, could further exacerbate this risk.
In summary, while MDL is positioned for growth, it must navigate these risks carefully to maintain its competitive edge and sustain its growth trajectory in the dynamic shipbuilding sector.
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Final Thoughts on Mazagon Dock Share Price Target 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.
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FAQs on Mazagon Dock Share Price Target 2024, 2025, 2027, and 2030
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 2026?
In 2026, it’s estimated that Mazagon Dock’s stock price will range from a low of ₹3,906 to a high of ₹4,883, with an average price target set at ₹4,395.
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.
