Shares of Mazagon Dock Shipbuilders Ltd. jumped over 6% on Thursday after it signed a contract worth 1,070.5 crore with the Ministry of Defence
The contract is for the delivery of 14 fast patrol vessels for the Indian Coast Guard within 63 months, according to an exchange filing. The FPVs will be used to enhance surveillance, anti-smuggling and anti-piracy measures, and search & rescue operations, it said.
On the NSE, Mazagon's stock rose as much as 6.49% during the day to 2,477.70 apiece, the highest since Jan. 16. It was trading 3.54% higher at Rs 2,408.95 per share, compared to a 0.42% decline in the benchmark Nifty 50 at 10 a.m.
The share price has risen 226.39% in the past 12 months. The total traded volume so far in the day stood at 4.5 times its 30-day average. The relative strength index was at 62.
Two out of four analysts tracking Mazagon have a 'buy' rating on the stock, one recommends a 'hold' and another suggests a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 228.6%.
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