Overview:
Mazagon Dock Shipbuilders Limited (MAZDOCK) is recognised as a multi-bagger stock in the public sector undertaking (PSU) segment. It is a premier Indian shipbuilding company specialising in the construction of warships and submarines for the Indian Navy, along with offshore platforms and associated support vessels for commercial clients.
Key Financial Metrics (As of March 25, 2025):
- Detailed financial metrics illustrating the company’s performance are provided below:
| Metric | Value |
| Market Capitalization | ₹1,054.64 billion |
| Enterprise Value | ₹919.06 billion |
| PE Ratio (TTM) | 38.33 |
| Forward PE Ratio | 35.96 |
| Price-to-Sales (P/S) Ratio | 9.28 |
| Price-to-Book (P/B) Ratio | 14.47 |
| Return on Equity (ROE) | 35.21% |
| Return on Assets (ROA) | 2.83% |
| Gross Margin | 36.76% |
| Operating Margin | 21.03% |
| Net Profit Margin | 24.22% |
| Current Ratio | 1.14 |
| Quick Ratio | 0.73 |
| Debt-to-Equity Ratio | 0.00 |
| Earnings Per Share (EPS) | ₹68.21 |
| Dividend Yield | 0.76% |
Shareholding Pattern of Mazagon Dock Shipbuilders Limited :
- The current shareholding structure of Mazagon Dock Shipbuilders Limited is as follows:
| Metric | Value |
| Market Capitalization | ₹1,054.64 billion |
| Enterprise Value | ₹919.06 billion |
| PE Ratio (TTM) | 38.33 |
| Forward PE Ratio | 35.96 |
| Price-to-Sales (P/S) Ratio | 9.28 |
| Price-to-Book (P/B) Ratio | 14.47 |
| Return on Equity (ROE) | 35.21% |
| Return on Assets (ROA) | 2.83% |
| Gross Margin | 36.76% |
| Operating Margin | 21.03% |
| Net Profit Margin | 24.22% |
| Current Ratio | 1.14 |
| Quick Ratio | 0.73 |
| Debt-to-Equity Ratio | 0.00 |
| Earnings Per Share (EPS) | ₹68.21 |
| Dividend Yield | 0.76% |
Fundamental Analysis of Mazagon Dock Shipbuilders Limited :
- Key insights from the fundamental analysis of Mazagon Dock Shipbuilders are outlined below:
| Metric | Value | Notes |
| Market Capitalization | ₹934.23 billion | Total market value of outstanding shares. |
| Enterprise Value | ₹798.65 billion | Total value of the company, including debt and excluding cash. |
| Price-to-Earnings (P/E) Ratio | 33.95 | Indicates how much investors are willing to pay per rupee of earnings. |
| Forward P/E Ratio | 29.12 | Expected P/E ratio based on future earnings projections. |
| Price-to-Sales (P/S) Ratio | 8.22 | Valuation ratio comparing the company’s market cap to its revenue. |
| Price-to-Book (P/B) Ratio | 12.82 | Reflects the market’s valuation relative to its book value. |
| Return on Equity (ROE) | 33.12% | Measures profitability relative to shareholders’ equity. |
| Return on Assets (ROA) | 4.70% | Indicates how efficiently assets generate profit. |
| Gross Margin | 36.76% | Percentage of revenue exceeding the cost of goods sold. |
| Operating Margin | 21.03% | Profitability after operating expenses. |
| Net Profit Margin | 24.22% | Percentage of revenue remaining as profit after all expenses. |
| Current Ratio | 1.20 | Ability to cover short-term liabilities with short-term assets. |
| Quick Ratio | 0.93 | Measures liquidity excluding inventory. |
| Debt-to-Equity Ratio | 0.00 | Indicates the proportion of company financing from debt vs. equity. |
| Earnings Per Share (EPS) | ₹91.50 | Portion of profit allocated to each outstanding share. |
| Dividend Yield | 0.62% | Annual dividends divided by share price. |
| Book Value Per Share | ₹276.20 | Net asset value per share. |
| Asset Turnover Ratio | 0.36 | Efficiency in using assets to generate revenue. |
| Inventory Turnover Ratio | 1.26 | Frequency of inventory sold and replaced over a period. |
| Dividend Payout Ratio | 23.21% | Proportion of earnings paid as dividends. |
| Cash & Cash Equivalents | ₹135.94 billion | Total liquid assets available. |
| Total Debt | ₹361.70 million | Aggregate short-term and long-term debt. |
| Net Cash | ₹135.58 billion | Cash after subtracting total debt. |
| Revenue Per Employee | ₹40.37 million | Average revenue generated per employee. |
| Profit Per Employee | ₹9.78 million | Average profit generated per employee. |
| Employee Count | 2,814 | Total number of employees. |
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Investment Rationale of Mazagon Dock Shipbuilders Limited :
Mazagon Dock Shipbuilders Limited presents a strong case for consideration based on the following factors:
- Robust Order Book: The company reported an order book valued at ₹34,787 crore.
- Strategic Investments: An investment of approximately ₹5,000 crore is planned to enhance shipbuilding and repair capabilities over the next few years.
- Exceptional Returns: The company has delivered a remarkable 1,772% return over the past three years.
- Strong Financial Performance: Profit growth of 29.4% CAGR over the last five years, with a return on equity (ROE) of 27.3% over the past three years.
- Healthy Dividend Payout: Maintains a dividend payout ratio of 28.7%.
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Potential Risk of Mazagon Dock Shipbuilders Limiteds :
While Mazagon Dock Shipbuilders limited demonstrates strong growth potential, some risks to consider include:
- Government Stake: The Government holds an 84.83% stake and has announced, as of April 4, 2025, its decision to divest up to 4.83% through an Offer for Sale (OFS) at a floor price of ₹2,525 per share, scheduled for April 7, 2025.
- Valuation Concerns: The stock is currently trading at 14.1 times its book value.
- Contingent Liabilities: The company has contingent liabilities amounting to ₹37,139 crore.
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Disclaimer:
This document is intended solely for educational purposes and should not be considered as a recommendation to buy, sell, or hold any stock. Investors are advised to consult their financial advisors and conduct their own research before making any investment decisions.
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