Mazagon Dock Share Price Rebounds As It Fetches Rs 1,990-Crore Order From Defence Ministry

Mazagon Dock Shipbuilders Ltd. share price rebounded from a two-day decline briefly in the last session of 2024. The share price recouped losses as Mazagon Dock Shipbuilders signed a contract worth Rs 1,990 crore.

The defence ministry signed two contracts worth Rs 2,867 crore with Mazagon Dock Shipbuilders and Naval Group, France on Monday, according to a press release on PIB.

The ministry's contract with Mazagon Dock Shipbuilders is for construction of the Air Independent Propulsion Plug for the DRDO-AIP system and its integration onboard Indian submarines. The focus on AIP plug and integration will boost the endurance of conventional submarines, the press release said.

Mazagon Dock Shipbuilders share price rose 4.45% to Rs 2,369.95 apiece, the highest level since Dec 27. It erased all gains to trade 1.72% lower at Rs 2,230.00 apiece as of 9:54 a.m., as compared to 0.51% decline in the NSE Nifty 50 index.

The stock gained 94.78% in 12 months and 95.64% on a year to date basis. Total traded volume on NSE so far in the day stood at 0.43 times its 30-day average. The relative strength index was at 42.43.

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 12.3%