1:2 Split + Rs 5.71 Dividend In 12 Months: Not HAL, But This Defence PSU To Declare 1st FY26 Diviedend; BUY?

A defence PSU giant is likely to announce new dividends for FY26 in the coming days. This company has already delivered Rs 5.71 per share dividend and carried out a 1:2 share split in the past 12 months. Backed by the government, this company's shares have a return on equity (ROE) nearly 31.7% as of October 23, 2025. Who is it? This is neither Bharat Electronics (BEL), Hindustan Aeronautics (HAL) or Bharat Dynamics (BDL), which are the top three largest defence companies of India and also backed by government.

The defence company who is scheduled to announce dividend is none other than Mazagon Dock Shipbuilders.

Mazagon Dock Shipbuilders Share Price:

After market hours of October 23, Mazagon Dock share price closed at Rs 2810.30 apiece, correcting by 0.9% on BSE, with market cap of Rs 1,13,361.88 crore. The stock's 52-week high and low is at Rs 3,778 apiece and Rs 1,917.95 apiece respectively.

Despite the latest correction, Mazagon Dock has surged by over 25% year-to-date on BSE, outperforming benchmark like Sensex as well. In a year, the stock skyrocketed by nearly 34%.

Mazagon Dock Shipbuilders Dividend:

In its regulatory filing, Mazagon Dock announced that a board of directors meeting is scheduled on Monday, 27 October 2025. During this meeting, following will be considered:

-To consider and approve the Unaudited Financial Results (Standalone & Consolidated) for the quarter and half year ended on 30 September 2025.

-To consider declaration of 1St Interim Dividend for the Financial Year 2025-26.

Earlier, Mazagon Dock delivered final and interim dividend of Rs 2.71 per share and Rs 3 per share for FY25 between April to September 2025. Together, it paid up to Rs 5.71 dividend per share for financial year 2024-25.

Mazagon Dock Shipbuilders Stock Split:

The upcoming dividend is also the third after Mazagon Dock split its shares in the ratio of 1:1 during December last year.

With effect from December 27, 2024, Mazagon Dock shares have split in the ratio of 1:1, meaning, that doubled investors portfolio in terms of number of shares. The face value of Rs 10 was trimmed to Rs 5 each.

Buy Mazagon Dock Shipbuilders Share?

As per analysts at Antique Stock Broking, Mazagon Dock's order book may reach to Rs Rs 1-1.05 lakh crore potentially ahead, which will be over 3 times higher than the current total order book. Also, Mazagon Dock is underway negotiations for Submarine Project P-75(I) (six submarines) and the Scorpene orders is also on the cards. That being said, elevated provisioning from previous orders is expected to provide recovery in the company's EBITDA.

Hence, the brokerage has recommended BUY for a target of Rs 3,856.

About Mazagon Dock Shipbuilders:

After its takeover by the Government in 1960, Mazagon Dock grew rapidly to become the premier war-shipbuilding yard in India, producing warships for the Navy and offshore structures for the Bombay High. It has grown from a single unit, small ship repair company, into a multi-unit and multi-product company, with significant rise in production, use of modern technology and sophistication of products. The company's current portfolio of designs spans a wide range of products for both domestic and overseas clients. Since 1960, MDL has built total 805 vessels including 30 warships, from advanced destroyers to missile boats and 8 submarines. MDL had also delivered cargo ships, passenger ships, supply vessels, multipurpose support vessel, water tankers, tugs, dredgers, fishing trawlers, barges & border out posts for various customers in India as well as abroad. MDL have also fabricated and delivered jackets, main decks of wellhead platforms, process platforms, jack-up rigs etc.

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