Mazagon Dock Shipbuilder share price jumps over 5% on order win from ONGC

About the new order 

Mazagon Dock Shipbuilders Ltd today opened up by 5% after bagging new order. Oil and Natural Gas Corporation Limited (ONGC) recently announced a significant development in its ongoing efforts to enhance its infrastructure. The company has placed an Award of Contract in favour of Mazagon Dock Shipbuilders Limited. This contract entails the execution of the Part Replacement of Pipeline Project (PRPP) on a turnkey basis, encompassing the replacement of approximately 44.4 kilometres of subsea pipelines in 19 segments.

The contract is valued at a total lump sum price of Rs 1,145 crore inclusive of all taxes and duties. The project is focused on the replacement and laying of subsea pipelines, a crucial component within the Oil & Gas sector ensuring efficient operations and upkeep of essential infrastructure. As of March 31, 2023 the company’s approximately order book stands at Rs 38,755 crore.

Stock Performance

In the last trading session, the stock closed at Rs 2,056.10. Today, it opened at Rs 2,140 and closed at Rs 2,116.80, up by 2.95%. Company’s 52-week high stands at Rs 2,483 while its 52-week low stands at Rs 612.80. The company currently boasts a market capitalization of approximately Rs 42,700 crore. Over the past six months shares of the company have given multibagger returns of 104.74% while in the same time frame, BSE Industrials have changed by 37.48% and in the past one-year shares of the company have given multibagger returns of 140.03%.

About the company

Mazagon Dock Shipbuilders, a government-owned shipyard under India’s Ministry of Defence, specializes in constructing and repairing warships, submarines, and commercial vessels. Recognized as a “Mini-ratna-I” in 2006, it’s the sole Indian shipyard to produce destroyers and conventional submarines. With a 40,000 DWT capacity, it crafts naval vessels for the Indian Navy, including frigates and Scorpene class submarines, playing a key role in indigenous Corvette production.

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