Mazagon Dock Share Price Resumes Decline After One-Day Rise As Stock Trades Ex-Split

Mazagon Dock Shipbuilders Ltd.'s share price resumed decline after a one-day rise and fell as they traded ex- split. Before Thursday's advance, the stock had lost nearly 13% in its five-session fall.

On October 22, the company had announced the split of one equity share of face value of Rs.10 each fully paid up into two equity shares of face value of Rs. 5.

Its exchange filing then had said that the rationale behind the split is to comply with DIPAM guidelines on capital restructuring; to encourage wider participation of small investors; and to enhance liquidity of the equity shares of the company in the stock market.

In addition to this, the defence company's board had announced an interim dividend of Rs 23.19 per share with record date set for Oct. 30. This follows a final dividend of Rs 12.11 per share declared on Sept.19.

The scrip fell as much as 3.07% to Rs 2,292.20 apiece. It pared losses to trade 2.3% lower at Rs 2,313.95 apiece, as of 10:25 a.m. This compares to a 0.7% advance in the NSE Nifty 50 Index.

It has risen 102% on a year-to-date basis. Total traded volume so far in the day stood at 0.2 times its 30-day average. The relative strength index was at 47.9.

Out of five analysts tracking the company, two maintain a 'buy' rating, two recommend a 'hold,' and one suggests 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 74.5%.