Mazagon Dock Shipbuilders Stock Surges Ahead of Quarterly Report

Mazagon Dock Shipbuilders' shares zoomed to a new high on Thursday, prior to the firm's earnings announcement for the fourth quarter of FY25. The state-owned defence company reached a new high of ₹3,750 per share on the National Stock Exchange before trimming gains slightly. At the time of writing, the stock traded up by more than 1.5% at ₹3,713.90. This is the seventh consecutive session of upturns for MDL, as stocks rebounded by almost 12% for the week from the low .

Stock Rally Extends Winning Streak

The stock's strong upward momentum extends beyond the recent rally. Over the past six months, MDL has delivered more than 60% returns, with a notable jump in the last 30 days. So far in calendar 2025, the shares have climbed over 65%, reflecting robust investor interest in the defence and shipbuilding space.

Q4 Preview Takes Centre Stage

The market wants evidence that the company will continue the growth pace witnessed during the December quarter, when MDL recorded its all-time high quarterly revenue. In Q3 FY25, net profit improved substantially to ₹807 crore, and revenue rose to ₹3,144 crore. The operating profit of the company also experienced a robust pickup, with EBITDA increasing to ₹817 crore and margins widening to 26%. 

Mazagon Dock has also been under the limelight for recent corporate activities. Mazagon Dock issued stocks in a 1:2 ratio upon completion of a stock split in October. The company has also announced a record interim dividend of ₹23.19 per share for FY25, which reflects good cash flows. An earlier dividend of ₹3 per share was also paid during the year. 

Defence Tender Momentum in Spotlight

Pace was accelerated earlier this month with "Operation Sindoor" generating hopes of new contracts from the Indian Navy. MDL is considered a leading player in this domain, and focus is now turning to next year's P75I submarine project, which is likely to take off in the next financial year. The company's possible entry into upcoming large-value defence contracts can really influence its growth path. 

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