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.
ICICI Direct Report
Mazagon Dock Shipbuilders Ltd. is engaged in the construction and repair of warships and submarines for the Ministry of Defence to be used by the Indian Navy along with other vessels for commercial clients.
The company's H1 FY23 profitability was driven by better execution, improvement in margins and higher other income.
Key triggers for future price performance-
Strong order backlog at Rs 42000 crore (6.1 times trailing twelve months revenues) gives strong revenue visibility. The order book comprises three major contracts - Project17A frigates, Project-15B destroyers and Project-75 submarines.
Mazagon Dock Shipbuilders is well placed to benefit from Indian Navy's big procurement plan for the next three to four years. Indian Navy's major projects in the pipeline are next generation destroyers, frigates, conventional submarines and corvettes. The estimated cost of these four projects is ~Rs 1.8 lakh crore.
Defence Acquisition Council has approved the procurement of eight next generation corvettes and request for proposal for the same is expected to be issued in 2023. The contract value is expected to be Rs 36000 crore (which will be divided into two shipyards).
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.