Small Cap PSU Defence Stock Gets Sell Call, Target Price Rs 600: ICICI Securities

ICICI Securities has recommended sell rating to small cap PSU Defence stock, Mazagon Dock Shipbuilders with target price of Rs 600 apiece. Current market price of Mazagon Dock Shipbuilders is Rs 663.35 apiece on BSE with intraday gain of 1.56% as of March 31, 2023. The company has a market capitalisation of Rs 13,379.11 crore. Check details below:

Mazagon Dock Shipbuilders Stock Performance & Return: Last trading price of 11:37:3,7Mazagon Dock Shipbuilders is Rs 663.35 apiece. Its 52-week high price is quoted at Rs 936.85 apiece and 52-week low price is quoted at Rs 229 apiece, respectively. The PSU stock gave 34% return in last 6-months, 176% return in last 1-year, and 212% return in last 2-years.

Valuation: According to ICICI Securities, "Unfavourable risk-reward. While we believe MDL has a good order pipeline, visibility on orderbook accretion remains low. Taking cognisance of impressive Q3FY22 performance, we raise our FY23E/FY24E EBITDA by 59%/16%, respectively. As a result, our revised TP works out to Rs600 (earlier: Rs575). Maintain SELL.

Mazagon Dock Shipbuilders About: Mazagon Dock Shipbuilders Limited is one of the leading shipbuilding yard in India. The History of Mazagon Dock dates back to 1774, when a small dry dock was constructed in Mazagon. 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, according to its official website.

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