Stock market news: Mazagon Dock Shipbuilders (Mazagon Dock Shipbuilders) stocks are showing a strong buy trend today even with weak market sentiment. BSE Sensex Today is in the red but shares of Mazagon Post are up about 5 percent to hit an intraday high of 811 rupees on the BSE. However, domestic brokerage firm ICICI Securities has given it a sell rating, meaning it has been advised to sell. According to the brokerage company, it can deviate by around 25 percent from the current price. It is currently trading at Rs 795.55 on strength of 4.50 percent.Mazagon Dock stock price) is traded.
Why the Mazagon Dock brokerage firm gave it a sell rating
The December 2022 quarter for Mazagon Dock was also 70 percent better than the brokerage firm’s estimate. The main reason for this was the early delivery of the fifth Kalvari-class submarine Vagir to the Indian Navy. From October to December 2022, the company had a turnover of Rs 1820 crore, up 17 per cent on an annualized basis and up 7 per cent on a quarterly basis. The EBITDA margin improved to 16.3 percent from 13 percent year-on-year, driven by operational efficiencies and lower costs. At the same time the company has accrued Rs 86 crore in respect of the guarantee.
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It has a strong order book through FY25. Despite all of these positives, the brokerage firm believes its free cash flow is likely to decline due to the long carry time. At the same time, the order book has also remained at Rs 41,000 crore, meaning there is no change. However, the brokerage firm has raised the target price to Rs 600 from Rs 575 based on quarterly results as of December 2022 but has maintained its sell rating.
Gave 320% return in 10 months last year
Mazagon Post shares were introduced to the domestic market on October 12, 2020. These shares were issued to IPO investors at a price of Rs 145. Last year on February 24, 2022 it was at Rs 224 which is a record low of one year. Thereafter, it surged 320 percent to Rs.936.85 over the next 10 months to December 5, 2022. Thereafter, however, it is currently at a discount of 15% under selling pressure.
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