Sell Mazagon Dock Shipbuilders, target price Rs 600: ICICI Securities

ICICI Securities has sell call on Mazagon Dock Shipbuilders with a target price of Rs 600. The current market price of Mazagon Dock Shipbuilders is Rs 718.7.

Mazagon Dock Shipbuilders., incorporated in the year 1934, is a Small Cap company (having a market cap of Rs 14219.15 Crore) operating in Defence sector.

Mazagon Dock Shipbuilderskey Products/Revenue Segments include Ship Construction, Spares & Scraps, Ship Repairs, Other Operating Revenue and Scrap for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 1991.75 Crore, up 6.74 % from last quarter Total Income of Rs 1865.97 Crore and up 20.31 % from last year same quarter Total Income of Rs 1655.57 Crore. Company has reported net profit after tax of Rs 337.26 Crore in latest quarter.

The company’s top management includes Mr.Narayan Prasad, Mr.Sanjeev Singhal, Mr.Jasbir Singh, Mr.Sanjay Jaju, Mr.Biju George, Mr.Vasudev Puranik, Mr.Mallikarjunarao Bhyrisetty, Mr.Shambhuprasad Tundiya, Mrs.Jagjeet Kaur Neeru Singh. Company has JCR & Co. as its auditors. As on 31-03-2023, the company has a total of 20 Crore shares outstanding.

Investment Rationale
The brokerage remains circumspect on MDL’s prospects as it does not expect any major order inflow, going by Indian Navy’s tentative contracts to be awarded over the next 2 years.

Promoter/FII Holdings
Promoters held 84.83 per cent stake in the company as of 31-Mar-2023, while FIIs owned 3.29 per cent, DIIs 0.3 per cent.