Mazagon Dock Shares Rise Nearly 2%, Snap Six-Session Losing Streak

Mazagon Dock Shipbuilders shares returned to positive territory on September 18, rising nearly 2% after six consecutive sessions of losses. The move came as the company outlined plans for a sizeable investment in a new shipyard in Maharashtra and provided an update on prospective naval orders. 

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The stock was trading at ₹2,251.90 on the NSE, up 1.9% during Friday’s session. 

Maharashtra shipyard investment in focus 

Mazagon Dock is looking at investing up to ₹15,000 crore in a shipyard in Maharashtra, according to the company’s Director (Finance), Ruchir Agrawal. 

The company is targeting returns of 15-17% from the proposed investment and expects a binding agreement soon. 

The update follows a memorandum of understanding signed by Mazagon Dock earlier this week with National Shipbuilding & Heavy Industries Park Maharashtra Ltd (NSHIPML). Under the MoU, the company plans to participate as the anchor shipyard in the proposed Greenfield Shipbuilding Industrial Cluster at Dighi in Maharashtra. 

The proposed facility is envisaged with an annual shipbuilding capacity of at least 1.2 million gross tonnes. It is intended to support the construction of large commercial vessels, alongside an ecosystem involving ancillary industries, MSMEs, technology partners and skilled employment. 

For Mazagon Dock, the Dighi project would mark an expansion beyond its established warship and submarine construction business into large-scale commercial shipbuilding. The project forms part of India’s Maritime Amrit Kaal Vision 2047. 

P75I submarine order expected this fiscal 

The company also expects the P75I submarine order during the current financial year. Mazagon Dock plans to participate in the Navy’s 75 Bravo request for proposal as well. 

The company expects its order book to remain strong if the P75I order comes through. 

Friday’s rise brought an end to a six-session decline in Mazagon Dock shares, with the stock gaining 1.9% to ₹2,251.90 on the NSE at the time cited in the report.