Extending gains to the eighth consecutive session, multibagger defence stock Mazagon Dock Shipbuilders climbed over half a per cent in morning trade on the NSE on Thursday, September 18. Mazagon Dock Shipbuilders share price opened at ₹ 3,008.50 against its previous close of ₹ 2,997 and rose 0.70 per cent to hit an intraday high of ₹ 3,017.90.
Mazagon Dock shares have given a healthy return of 34 per cent year-to-date (YTD), while over the last year, the stock has risen 44 per cent, hitting a 52-week high of ₹3,775 on May 29 and a 52-week low of ₹1,918.05 on February 19 this year.
Over a five-year timeframe, the stock has delivered a multibagger return of nearly 3,480 per cent.
On December 27 last year, the stock underwent a 1:2 split. Each share with a face value of ₹10 was divided into two shares of ₹5 each.
Mazagon Dock Shipbuilders: Is it a stock to buy?
Mazagon Dock Shipbuilders, a Navratna company, is a leading naval defence company which manufactures critical sea-defence assets, including submarines.
Mazagon Dock, like several other defence stocks, has seen strong momentum of late on the prospects of strong demand and increased government focus on the sector.
Brokerage firm Globe Capital Market highlighted that during FY25, annual defence production reached a new high of approximately ₹1.51 lakh crore, up 18 per cent year-on-year growth. Exports also soared to a record ₹23,622 crore.
In the Union Budget FY26, the government allocated ₹6.81 lakh crore for defence. This includes ₹1.80 lakh crore dedicated to capex and modernisation. Crucially, 75 per cent of this capital budget is reserved for domestic procurement, ensuring a major boost for local manufacturers, including a designated portion for private industry, Globe Capital observed.
Globe Capital Market has an “overweight” rating on the stock with a target price of ₹3,920. This implies a 31 per cent upside potential from the stock’s September 17 closing of ₹2,997 on the NSE.
The brokerage firm expects the company’s topline to grow nearly 15 per cent until FY28 based on a strong order book and its execution capabilities. It further believes the company may post EPS of ₹88 and ₹96 in FY26 and FY27, respectively.
“It has a strong order book of worth ₹32,260 crore till FY25 End. We maintain an overweight rating based on a PE of 40 for the target price of ₹3,920 for FY27E,” said Globe Capital.
Technical indicators also appear favourable for the stock.
According to Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, a strong base formation is visible at the 200 DEMA, reinforcing the stock’s support zone. Simultaneously, the MACD histogram and signal line are showing bullish divergence, suggesting fading bearish momentum and a potential reversal.
“Considering these technical factors, we recommend initiating long positions in the ₹2,950-3,000 zone. A protective stop-loss at ₹2,800 on a daily close basis is advised to manage downside risk,” said Patel.
“On the upside, the stock has the potential to move towards the ₹3,300 target. The overall setup indicates a favourable risk-reward scenario with strong technical backing for a bullish outlook,” Patel said.
Shitij Gandhi, a senior technical research analyst at SMC Global Securities, underscored that Mazagon Dock stock has staged a sharp recovery from the ₹2,700 level, supported by the 200-day EMA, and rallied smartly in recent sessions. This bounce was backed by steady volumes, signalling renewed buying interest.
“Currently, the price is hovering just below the ₹3,050-3,100 mark, which acts as a crucial resistance zone now. A decisive breakout above it could pave the way for an extension toward ₹3,250-3,350 in the near term. Failure to cross ₹3,100 may invite profit-booking, with immediate support seen around ₹2,850-2,900, followed by strong demand at ₹2,700,” said Gandhi.
Hardik Matalia, a derivative analyst at Choice Broking, pointed out that the stock has been consolidating near its crucial demand zone and has recently shown a strong bounce from these support levels, indicating early signs of strength returning.
On the daily timeframe, the stock has also given a breakout from its consolidation range, hinting at a potential resumption of its broader uptrend.
“On the technical front, Mazagon Dock has taken support around its 200-day EMA and has bounced sharply, now trading above all its key moving averages – a positive sign suggesting improving bullish momentum. The RSI stands at 66.71 and is trending strongly upwards, reflecting increasing buying strength and rising momentum in the stock,” said Matalia.
Matalia believes that if the stock manages to surpass and sustain above the ₹3,000 mark, it could trigger fresh buying interest and mark the beginning of a renewed bullish phase, potentially paving the way for further upside continuation.
On the downside, the recent swing lows will act as an immediate support zone, and as long as the stock holds above these levels, the overall bias is expected to remain positive. A breach below these swing lows, however, could warrant caution and may pause the bullish sentiment.
“Given the current setup, short-term traders can consider initiating fresh long positions once the stock sustains above the ₹3,000 mark or look for buying opportunities on dips near support zones while maintaining a strict stop-loss below the swing lows,” said Matalia.
“Long-term investors can also start partial accumulation at current levels and continue adding on declines in a staggered manner, as long as the stock holds above its key support levels,” Matalia said.