Shares of Mazagon Dock Shipbuilders are in a short term bull run, rising 10% in week. The recent up move comes in line with other defence stocks amid reports the Ministry of Defence has received and begun discussions on a proposal from the Indian Air Force to acquire 114 ‘Made in India’ Rafale fighter jets.
The deal is estimated to be worth over Rs 2 lakh crore.
Last weekend, defence minister Rajnath Singh approved the new Defence Procurement Manual (DPM) 2025, which also boosted sentiment in the defence stocks.
Amid the recent uptick, financials of Mazagon Dock present a rosy picture.
The company’s return on equity (RoE) came at 32.37% in the last fiscal, keeping above 30% mark from 33.12% in FY24.
Return on assets rose at a CAGR of 33.1% in five years. It stood at 8.31% in FY25 rising from 6.41% in the previous fiscal.
The net profit CAGR in the last five fiscals stood at 41.6%. Revenue CAGR too stood at a healthy 18.1% in five years. The company has zero debt on its books.
In the current session, Mazagon Dock stock was trading on a flat note at Rs 2938.45 on BSE. Mazagon Dock’s market cap stood at Rs 1.18 lakh crore on BSE. The stock has gained 160% in two years and risen 1265% in three years.
Total 0.40 lakh shares of the firm changed hands amounting to a turnover of Rs 11.70 crore.
In terms of technicals, the relative strength index (RSI) of Mazagon Dock stands at 63.2, signaling it’s trading neither in the overbought nor in the oversold zone. Mazagon Dock shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
Axis Securities has a buy call on the defence sector stock.
It assigned a Buy call with a target price of Rs 3,240-3,300. Stop loss can be fixed at Rs 2,685.
“Mazagon Dock found support at its medium-term upward sloping trendline (in place since April 2024) and staged a sharp rebound, signalling a potential reversal. Furthermore, the stock has broken out of a falling channel on the weekly chart (in formation since the all-time high of Rs 3,775 in May 2025) with a strong bullish candle, reinforcing a short-term positive bias,” the brokerage said.
“Momentum indicators further validate the bullish outlook, with the weekly RSI crossing above its signal line from oversold territory, confirming renewed momentum and strengthening the positive setup,” Axis added.
Nirmal Bang has a price target of Rs 3540 on the defence stock.
Nirmal Bang expects Mazagon to deliver robust growth with CAGR of 21% in revenue, 22% in EBITDA, and ~17% in PAT over FY25-FY27E.
The brokerage said the company was confident about securing the P75 additional submarine and P75I submarine contracts in FY26, which is expected to expand its order book from Rs 32,000 crore to over Rs 1.25 lakh crore.
“While 1HFY26 is expected to remain soft, we anticipate a notable recovery in financial performance from 3QFY26, aided by the scheduled delivery of key platforms,” added Nirmal Bang.
Antique Stock Broking has maintain a BUY call with a target price of Rs 3,858.
The brokerage has reiterated its Buy rating on Mazagon Dock Shipbuilders, highlighting strategic investments and potential orders that could greatly enhance the company’s growth trajectory. Its note also underscores Mazagon Dock’s strong position in the shipbuilding sector.
As per Antique Stock Broking, Mazagon Dock has embarked on an ambitious expansion plan, including the development of a new dry dock in Nhava village. This project aims to double its shipbuilding capacity.
The company’s value of production reached Rs 1,119 crore in FY25, meeting 99.5 per cent of the Ministry of Defence’s target. This consistent performance highlights Mazagon Dock’s operational efficiency and commitment to national defence goals,
“In our view, the follow-on order for three Scorpene submarines, and six P75-I submarines can significantly elevate the order book and drive medium-term growth in revenue. We believe the quarterly volatility in margins due to spike in provisions is now largely behind us. We maintain BUY rating with a target price of Rs 3,858,” it said.
Mazagon Dock Shipbuilders Ltd (MDSL) is a leading defence public sector undertaking shipyard under the Ministry of Defence (MoD). Mazagon Dock is primarily engaged in constructing and repairing warships and submarines for MoD and other types of vessels i.e. cargo ships, multipurpose support vessels, barges and border outposts, tugs, dredgers, water tankers, etc. for commercial clients.