Shares of this defence Stock jumped 10 percent in Thursday’s trading session after announcing the Record Date for the purpose of payment of the Final Dividend for FY22-23.
With a market capitalization of Rs 42,107.83 crores, the stocks of Mazagon Dock Shipbuilders Limited closed at Rs 2,087.75 on Thursday, gaining around 10 percent compared to the previous close of Rs 1,905.10 apiece.
One of the probable reasons for the company’s stock price to surge is pertaining to a recent filing the company posted with the exchange dated 6th September 2023. The filing mentioned the company fixing 20th September 2023 as the Record Date for the purpose of payment of the Final Dividend for the financial year 2022-2023.
Within a period of just three months, the company’s stock has proven to deliver multibagger returns of 103 percent, i.e., if someone had invested Rs 1 Lakh into the stock, it would have converted to Rs 2.03 Lakhs within a period of three months.
Digging into the financial numbers reported, the company, during the past couple of financial years, has seen decent growth in operating revenues as well as net profits. The operating revenues went up from Rs 5,733 crores during FY21-22 to Rs 7,827 crores during FY22-23, and, the net profits, in congruence with the pattern, moved from Rs 563 crores to Rs 1,046 crores.
Moreover, the profitability metrics of the company such as the return on equity (RoE) as well as return on capital employed (RoCE) have seen substantial growth with the former jumping from 15.83 percent during FY21-22 to 23.50 percent during FY22-23, and, the latter moving up from 16.79 percent to 26.46 percent keeping the timeframe the same. The net profit margin also increased from 9.82 percent to 13.36 percent.
The latest shareholding data of the company, as per the quarter ended June 2023, portray the Promoters holding a 84.83 percent stake, and the Foreign Institutional Investors (FIIs) holding a 3.29 percent stake in the company.
Founded in 1934, Mazagon Dock Shipbuilders Limited is engaged in the business of building as well as repairing submarines, ships, and other related engineering products within and outside India.
Written by Amit Madnani
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