After rallying to new highs, two Miniratna PSU stocks in the shipping segment witnessed correction broadly this week. However, this brings a buy-on-dips opportunity in the two stocks as Prabhudas Lilladher has recommended a buy with a potential upside likely in the range of 13% to 25%. These two shipping giants are Mazagon Dock Shipbuilders and Garden Reach Shipbuilders & Engineers (GRSE).
1. Mazagon Dock Shipbuilders:
Mumbai's leading dock company, Mazagon Dock Shipbuilders share price stood at Rs 2206.70 apiece on April 10th with a market cap of Rs 44,506.93 crore. In the past five trading sessions, Mazagon Dock's share is broadly flat, while its monthly gains are over 9.3% on BSE.
Mazagon Dock's share price is undervalued by 11.4% compared to its 52-week high of Rs 2,490 apiece. But the stock is a multi-bagger with gains of mind-boggling 222.64% from its 52-week low of Rs 683.95 apiece.
The stock is also among dividend-paying. The latest dividend payout is of 153.4% amounting to Rs 15.34 per share. In FY23, the company delivered dividends of 159.60% amounting to Rs 15.96 per share.
Currently, it has a dividend yield of 0.72%.
In its thematic report, Prabhudas Lilladher said, "MAZAGON DOCK has witnessed a decent slide in the last 2 months and after a short consolidation, has indicated a bullish candle formation moving past the important 200 period MA of 1975 levels to improve the bias and can anticipate for further upward move in the coming days."
Further, the brokerage added, "The RSI has recovered strongly from the oversold zone indicating a positive trend reversal has signaled a buy. We suggest to buy the stock for upside targets of 2500 levels keeping the stop loss at around 1780 levels."
There is potential for a 13.3% upside in Mazagon Dock.
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.
2. Garden Reach Shipbuilders & Engineers (GRSE):
In the last trading session, April 10, GRSE share price ended at Rs 881.65 apiece, down by 1.61% on BSE with a market cap of Rs 10,099.48 crore. In its past 5 sessions, the stock is only up by nearly a per cent, but its monthly gains are a whopping 15%.
GRSE is less than Rs 100 away from its 52-week high of Rs 973.95 apiece, while it has surged impressively by 97.30% on BSE.
This Miniratna is also among dividend-paying stocks. The latest dividend payout was in early 2024 to the tune of 79.2% aggregating to Rs 7.92 per share. In FY23, the company delivered dividends up to 62% amounting to Rs 6.2 per share. Currently, it has a dividend yield of 0.7%.
In its report, Prabhudas added, "GRSE, after the decent correction witnessed from 920 zones, has recently taken support near the 680 zones and indicated a decent pullback moving past the important 200 periods MA and 50EMA levels to improve the bias anticipating for further rise. The RSI is on the rise indicating strength and much upside potential visible from the current rate."
Accordingly, Prabhudas Lilladher has set a target price of Rs 1,080 with a stop loss of Rs 730 on GRSE.
Over the last 6 decades, GRSE has built over 785 platforms including 100+ warships for the Indian Navy, Indian Coast Guard, and Government of Mauritius & Seychelles Coast Guard - the highest number of warships built & delivered by any Indian shipyard to date.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.
Click it and Unblock the Notifications
Sign in with Google