Mazagon Dock Shipbuilders, a zero-debt defense public sector unit with Navratna status, rebounded on October 23, 2024, following its announcement of a historic stock split and a significant interim dividend payout. This has created an attractive opportunity for investors to buy on dips. Currently, the stock is trading at ₹4,322.20, up by 3.72% or ₹162.25, after hitting an intraday high of ₹4,344.55. This recovery comes after a 10% decline on the BSE the previous day. Over the past year, Mazagon Dock shares have seen impressive growth, rising 137.5% from a 52-week low of ₹1,742, although they remain below the 52-week high of ₹5,859.95. Year-to-date, the stock has gained nearly 80%.
Stock Split Details: The company has received approval for its first-ever stock split in a 1:2 ratio, meaning one equity share with a face value of ₹10 will be divided into two shares with a face value of ₹5 each. The record date for this split will be announced after obtaining shareholder approval via a postal ballot and electronic voting. The split aims to comply with DIPAM guidelines on capital restructuring, encourage wider participation from small investors, and improve liquidity in the stock market.
Dividend Announcement: In addition to the stock split, Mazagon Dock announced an interim dividend of ₹23.19 per equity share for the financial year 2024-25. The record date for this dividend is set for October 30, 2024, with payments expected to be completed by November 20, 2024. In FY24, the company paid a total dividend of 274.50%, amounting to ₹27.45 per share, resulting in a current dividend yield of 0.66%.
Stock Recommendations: Current consensus from analysts suggests holding the stock, with expectations of a 67.5% growth in earnings per share (EPS) in FY25. Broker Antique Stock Broking recommends a buy, projecting a target price of ₹5,483 per share.
Company Overview: Mazagon Dock, established in 1934 and taken over by the government in 1960, has become a premier shipbuilding yard in India, specializing in warship construction for the Indian Navy and offshore structures. The company has evolved significantly, transitioning from a small ship repair unit to a multi-unit, multi-product entity known for its quality and modern technology.
Disclaimer: The information provided in this summary is for informational purposes only and does not constitute financial or investment advice. It is important to conduct your own research and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results, and investments in stocks carry risks, including the potential loss of principal. The recommendations and opinions expressed here reflect the views of the author and may not represent the views of Mazagon Dock Shipbuilders or any financial institutions.
Leave a Reply