BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
HDFC Securities Retail Research
Indian Navy's major projects in the pipeline are next generation destroyers, next generation frigates, conventional submarines and next generation corvettes. Mazagon Dock Shipbuilders Ltd. is India's only shipyard to engage in building destroyers and conventional submarines for the Indian Navy. The upcoming bids from the defence ministry could improve the order book and revenue visibility of the company.
Mazagon Dock Shipbuilders Ltd. has ability to sustain the growth in overall performance in a competitive environment, while maintaining leadership in warship building and retaining its largely debt-free status with comfortable liquidity.
Growth momentum is expected to continue in the coming quarters. The company is currently working on seven projects, comprising 15 ships for the Navy, Coast Guard, and others.
While the company can pass through the cost, a sudden spike in prices of raw materials, like steel and energy, can impact profitability. Expectation of improvement in book to bill ratio due to bids in pipeline coupled with timely execution of current order book could lead to re-rating of Mazagon Dock Shipbuilders Ltd.
Compared to its two public sector peers, it scores better in terms of profit after tax margins and return on equity, while its valuation is lower.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
