1 Defense Stock Witness Extraordinary Rally Of Over 230% In 6 Months, To Pay Rs 6.86 Dividends; Do You Own?

Defense stocks are at mighty-high levels with some even emerging as multibaggers so far in 2023. But one defense stock, Mazagon Dock Shipbuilders, is on a whole another extraordinary rise. In six months, this leading shipbuilder in the nation, has skyrocketed over 234%. The stock will further be in focus this week as it will trade ex-dividend for its Rs 6.86 dividend per share.

Mazagon Dock Shipbuilders has been consistently earning Profits and distributing Dividend for the past more than 15 years, it said in its annual report.

For the financial year 2022-23, the company has declared a final dividend of Rs 6.86 per equity share of Rs 10/- each (i.e. @ 68.60 %). The dividend payout will be around Rs 138.36 crore.

Earlier, for the same fiscal, the company paid an interim dividend of Rs 9.10 per equity share, amounting to Rs 183.54 crore. It was duly approved by the Board of Directors in their meeting held on 10 Nov 2022.

In regards to the final dividend, the company highlighted that dividends will be payable to those eligible members whose name appeared:

- As Beneficial Owners as at the close of business hours on Wednesday, 20 September, 2023 as per the list of beneficial owners to be furnished by the NSDL and CDSL in respect of the shares held in electronic form; and

- As Members, in respect of shares held in physical form after giving effect to valid transmission and transposition requests lodged with the Company as at the close of business hours on Wednesday, 20 September, 2023.

Following this, the company's book closure is announced from 21 September, 2023 to 27 September, 2023 (both days inclusive) for annual general meeting (AGM) and final dividends approval.

That means that Mazagon Dock shares will trade ex-dividend on September 20, and those investors who hold this stock by the end of Wednesday in their demat accounts or physical forms, will be eligible for the benefit.

Mazagon Dock Shipbuilders is one of the leading shipbuilding yards in India. Over the years, MDL has earned a reputation for quality work and established a tradition of skilled and resourceful service to the shipping world in general and the Indian Navy & Coast Guard. It was incorporated as a Private Limited Company in 1934.

On Monday, the stock stood at Rs 2196.55 apiece, down by 3.11% on BSE from the previous session.

Earlier, on September 8, the stock rallied to a new 52-week high of Rs 2,483 apiece. The strong surge can be attributed to the company's Master Ship Repair Agreement (MSRA) which it signed with the US Government represented by NAVSUP Fleet Logistics Center (FLC) Yokosuka.

Mazagon Dock has a strong order pipeline ahead. As of June 30, 2023, Mazagon Dock sits on an unexecuted order book of Rs 39,117 crore --- of which --- Rs 14,713 crore order value is in P15B destroyers, and Rs 17,843 crore in P17A Stealth Frigates. By the end of FY23, the company's operational order book stood at Rs 38,755 crore.

Compared to its peers, Mazagon Dock Shipbuilders has outperformed all of them in the defense basket. As per Kotak Institutional Equities report, Mazagon Shipbuilders rose by 239% in 6 months, compared to peers like Cochin Shipyard which gained by 151% and BEML which rose by 108% during this period. Other defense stocks also zoomed between 18% to 60%.

Even in three-months period, while other defense stocks have witnessed correction, Mazagon Dock continues to be a multibagger with 115% upside.

Since its listing in October 2020, Mazagon Dock Shipbuilders shares has boomed by over 1,200%. From its IPO issue price of Rs 145, the stock has soared extraordinarily by more than 1,400%.

Disclaimer:

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