Synopsis: Anand Rathi has designated Mazagon Dock Shipbuilders as its top pick for the month, highlighting the compelling reasons behind their selection.
Stock Recommendation: Mazagon Dock Shipbuilders has demonstrated remarkable performance with its shares yielding exceptional returns of over 204% within a year and a staggering 1,072% over three years.
On Wednesday, Mazagon Dock's share price surged by over 3%, marking its second consecutive session of gains fueled by robust buying activity.
Continuing its upward trajectory, Mazagon Dock shares built upon a 4% increase observed in the preceding session, accompanied by significant trading volumes.
Anand Rathi, a reputable brokerage firm, has identified Mazagon Dock Shipbuilders as its 'Pick of the Month,' projecting a substantial upside potential of around 11%.
Technical analysis indicates that Mazagon Dock Shipbuilders has broken out of a consolidation phase, suggesting a bullish trend, as stated by Anand Rathi.
Based on this analysis, the brokerage firm recommends traders to initiate buy positions on Mazagon Dock Shipbuilders shares within the range of INR2,250 – 2,270, setting a stop loss at INR2,140, and targeting an upside of INR2,500.
Specializing in the manufacturing and repair of warships, submarines, and various other vessels for the Indian Navy, Mazagon Dock Shipbuilders also produces a range of related engineering products.
For the quarter ending December 2023, Mazagon Dock Shipbuilders reported a consolidated net profit of INR626.8 crore, with revenue from operations reaching INR2,362.5 crore. Notably, the company's EBITDA surged to INR539 crore, with an improved margin of 22.8%.
Despite a flat performance in 2024 thus far, Mazagon Dock's share price has surged by over 20% in the past month, underscoring its potential for substantial returns.
As of 11:10 am, Mazagon Dock shares were trading 1.03% higher at INR2,283.15 per share, with a market capitalization of INR46,025 crore on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies. We advise investors to check with certified experts before making any investment decisions.
