Mazagon Dock Shipbuilders Ltd. (MAZDOCK) AI Stock Analysis

• Market Cap: ₹873.86B
• Dividend Yield: 0.47%
• Average Volume (3M): 92.79K
• Price to Earnings (P/E): 28.5
• Beta (1Y): 2.02
• Revenue Growth: 12.22%
• EPS Growth: -9.22%
• Country: IN
• Employees: 2,814
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 21.80
• Shares Outstanding: 403,380,000
• 10 Day Avg. Volume: 55,913
• 30 Day Avg. Volume: 92,786
• PEG Ratio: 1.75
• Price to Book (P/B): 13.10
• Price to Sales (P/S): 9.10
• P/FCF Ratio: 44.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹2,772.00
• Price Target Upside: 11.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 68.93
• Revenue Forecast (FY): ₹130.48B

• Rating: 68 Neutral
• Price Target: ₹2,361.00 ▼(-5.36% Downside)
• Action: Downgraded Date: 10/17/25
• Date: Action: Downgraded 10/17/25

Mazagon Dock Shipbuilders Ltd. has a commendable financial performance, which is the most significant factor in its overall score. However, the stock's valuation suggests it may be overvalued, and technical indicators show neutral momentum. These factors contribute to a moderate overall stock score.

Positive Factors

Revenue Growth

Sustained, large-scale revenue growth reflects successful execution of multi-year defense projects and expanding program scale. This increases capacity utilization, strengthens supplier relationships, and creates durable topline visibility tied to long-term government contracts rather than one-off sales.

Strong Cash Generation

Consistent operating cash conversion and robust free cash flow support capital expenditures, lifecycle investments, and debt reduction without dilutive financing. Reliable cash generation underpins long-term project funding and resilience through multi-year contract cashflow timing.

Strategic Defense Positioning

As a government-owned major domestic shipyard serving the Indian Navy, the company benefits from high barriers, preferential contracting, and predictable defense spending. This structural role provides a steady pipeline of complex programs and limited domestic competition over the medium term.

Negative Factors

Rising Liabilities

An upward trend in total liabilities raises medium-term financial risk despite a currently conservative debt ratio. If liabilities grow faster than cash generation, funding costs or liquidity stress could increase, constraining capital allocation for projects or modernization investments.

Margin Volatility

Variable EBIT margins suggest execution and cost-control challenges across large, complex contracts. Persistent margin swings reduce earnings predictability and can erode returns on multi-year programs if input costs, subcontractor issues, or change orders remain unevenly passed through.

Declining EPS

Negative EPS growth signals recent pressure on per-share profitability, potentially from project timing, higher costs, or increased non-operating charges. Continued EPS decline would weaken shareholder returns and could limit reinvestment capacity unless margins and execution stabilize.

Mazagon Dock Shipbuilders Ltd. Business Overview & Revenue Model

Company Description

Mazagon Dock Shipbuilders Limited engages in building and repairing of ships, submarines, vessels, and related engineering products in India and internationally. It operates in two segments, Shipbuilding and Submarine. It offers naval ships, such as corvettes, nilgiris, missile boats, Godavari class frigates, patrol vessels, destroyers, and leander class frigates; merchant ships, including trailing suction hopper dredgers, general cargo vessels, multipurpose support vessels, offshore supply vessels, special trade passenger cum cargo vessels, 45 T bollard pull voith tugs, and BOP vessels; and submarines. The company was formerly known as Mazagon Dock Limited. Mazagon Dock Shipbuilders Limited was founded in 1774 and is based in Mumbai, India.

How the Company Makes Money

Mazagon Dock Shipbuilders Ltd. generates revenue primarily through government contracts for defense shipbuilding and repair services. The company’s key revenue streams include the construction of naval vessels for the Indian Navy, which encompasses submarine and surface ship projects. Additionally, MAZDOCK engages in commercial shipbuilding, providing services to private sector clients. The company also benefits from periodic maintenance and repair contracts, which provide a steady income stream. Significant partnerships with the Ministry of Defence and collaborations with other defense and maritime entities further bolster its revenue generation capabilities. Moreover, the company’s strategic initiatives aimed at modernization and technological upgrades enhance its competitiveness in securing new contracts.

Mazagon Dock Shipbuilders Ltd. Financial Statement Overview

Summary

Mazagon Dock Shipbuilders Ltd. shows strong financial performance with robust revenue and profit growth, efficient cost management, and prudent debt management. However, attention is needed on increasing liabilities and variability in certain margins and cash flows.

Income Statement

Mazagon Dock Shipbuilders Ltd. has exhibited robust revenue growth over the years, with a notable increase from 57,176 million to 114,319 million in the latest fiscal year. The gross profit margin has improved, indicating efficient cost management. Net profit margins are strong, reflecting profitable operations. The EBITDA margin is also healthy, showcasing effective earnings before non-cash expenses. However, fluctuations in EBIT margins indicate potential volatility in operating performance.

Balance Sheet

The company maintains a conservative debt position with a low debt-to-equity ratio, reducing financial risk. Its equity ratio is solid, indicating a strong equity base relative to total assets. Return on equity is impressive, showing efficient use of shareholder funds to generate income. Nonetheless, total liabilities have been increasing, which could pose a risk if not managed properly.

Cash Flow

Mazagon Dock Shipbuilders Ltd. demonstrates strong operating cash flows with consistent growth. The operating cash flow to net income ratio is favorable, highlighting effective conversion of earnings to cash. Free cash flow generation is robust, supporting future investments and debt reduction. However, the free cash flow growth rate has shown variability, which could affect long-term cash reserves if not stabilized.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	117.00B	114.32B	94.67B	78.27B	57.18B	40.42B
Gross Profit	39.81B	30.15B	28.33B	22.33B	16.64B	11.70B
EBITDA	28.59B	31.81B	25.17B	14.87B	4.52B	6.69B
Net Income	21.70B	24.14B	19.37B	11.19B	6.11B	5.14B
Balance Sheet
Total Assets	0.00	287.08B	294.49B	294.63B	297.70B	250.50B
Cash, Cash Equivalents and Short-Term Investments	161.50B	161.50B	142.09B	132.86B	114.80B	80.28B
Total Debt	0.00	203.30M	9.30M	60.40M	116.40M	296.60M
Total Liabilities	-79.40B	207.68B	232.05B	247.03B	259.12B	216.18B
Stockholders Equity	79.40B	79.40B	62.43B	47.60B	38.58B	34.32B
Cash Flow
Free Cash Flow	0.00	23.27B	2.43B	7.22B	-2.01B	261.20M
Operating Cash Flow	0.00	31.31B	6.84B	8.58B	-1.63B	682.10M
Investing Cash Flow	0.00	-23.52B	14.20B	5.08B	3.26B	3.48B
Financing Cash Flow	0.00	-7.12B	-4.49B	-2.18B	-1.83B	-1.60B

Mazagon Dock Shipbuilders Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2494.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MAZDOCK, the sentiment is Negative. The current price of 2494.8 is above the 20-day moving average (MA) of 2336.50, above the 50-day MA of 2410.46, and below the 200-day MA of 2783.88, indicating a bearish trend. The MACD of -62.41 indicates Positive momentum. The RSI at 29.79 is Positive, neither overbought nor oversold. The STOCH value of 14.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MAZDOCK.

Mazagon Dock Shipbuilders Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEL	77 Outperform	₹3.32T	46.53	―	0.60%	16.58%	25.45%
GRSE	71 Outperform	₹264.99B	40.98	―	0.80%	43.86%	60.18%
MAZDOCK	68 Neutral	₹873.86B	28.54	―	0.47%	12.22%	-9.22%
LT	66 Neutral	₹5.34T	43.68	―	0.84%	13.33%	21.25%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BEML	62 Neutral	₹137.30B	-173.04	―	0.29%	-1.31%	3.61%