Mazagon Dock Shipbuilders Q3 Results Review: Nirmal Bang Upgrades Both Rating And Target Price — Here's Why

Mazagon Dock executed a stock split, reducing the face value from Rs 10 to Rs 5 per share, effective December 27, 2024.NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.We have revised our revenue growth, Ebitda margin, and PAT margin forecast for FY25, FY26, and FY27 to 25.6%, 23.5%, and 23.3%; 26.8%, 25.1%, and 23.8%; and 24.7%, 25.5%, and 23.2%, respectively, to reflect Mazagon Dock Shipbuilders Ltd.'s management guidance. According to the management, margins are not expected to drop because the existing order book is being executed on a nomination basis, which has better margins. Other expenses and provisions have increased due to provisions for excess inventory from ships with expired warranties. While the components are still in good shape and may be used in future projects, the provisions will be reversed upon utilization. The company has projected a 12-15% PBT margin over three years.Given the current rate of execution, significant booking revenue, and a healthy order pipeline, we believe the firm will likely exceed its expectations. The company is trading at a 1-year P/E ratio of 20.6x. Given the timely implementation of platforms, strong revenue visibility over three years, and a growing order book, we are raising our rating from Hold to Buy. We value Mazagon Dock at 25x Dec'26E EPS, which is lower than its three-year average P/E of 29.8x, owing to a large order book and great execution visibility..The revenue/Ebitda/PAT grew by 33.1%/51.5%/28.8% YoY to Rs 31.4 billion/8.2 billion/8 billion higher than our estimate at Rs 28.5 billion/5.6 billion/6.7 billion due to delivery of P15 Bravo which contributed significantly to the overall revenue in Q3 FY25. The liquidity damages of Rs.1.4 billion were adjusted in *Other income*..Click on the attachment to read the full report:.JK Lakshmi Cement Q3 Review: Motilal Oswal Maintains 'Buy' On The Stock, Says Cost Savings Drives Margin.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Mazagon Dock Shipbuilders Q3 Results Review: Nirmal Bang Upgrades Both Rating And Target Price — Here's Why

Given the timely implementation of platforms, strong revenue visibility over three years, and a growing order book, Nirmal Bang raises its rating from Hold to Buy.

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