Mazagon Dock Shipbuilders Crosses ₹1 Lakh Crore in Market Cap; Stock Up 115% in 2024

Historical Context: Mazagon Dock Shipbuilders Ltd., a state-run shipbuilding company, has a rich history dating back to its establishment in 1774. It has played a crucial role in India’s maritime and defense sectors, constructing warships and submarines for the Indian Navy. The company went public in October 2020, with an initial public offering (IPO) price of ₹145 per share. Since then, it has shown remarkable growth, reflecting its strategic importance and robust performance.

Current Market Performance: As of Thursday, shares of Mazagon Dock Shipbuilders Ltd. surged by 6.3% to reach ₹4,990. This recent increase has contributed to the stock’s impressive performance in 2024, with a gain of 115% so far. Over the past 12 months, the stock has appreciated by over 280%. Remarkably, the stock has doubled in value each year for the last three years, with gains of 185% in 2022 and 187% in 2023.

Technical Analysis: On the technical front, Mazagon Dock shares are currently in the “overbought” territory, with a Relative Strength Index (RSI) of 77. An RSI above 70 typically indicates that a stock is overbought, suggesting that it may be due for a price correction.

Ownership and Market Capitalization: Mazagon Dock Shipbuilders is primarily owned by the Government of India, which holds an 84.8% stake as of the March quarter. This stake is valued at over ₹85,000 crore. Despite the significant government ownership, the company also has a substantial number of retail shareholders, totaling 3.75 lakh as of the March quarter.

Summary in Bullet Points:

• Historical Background: Established in 1774, Mazagon Dock Shipbuilders has been pivotal in India’s maritime and defense sectors.
• IPO and Growth: Went public in October 2020 at ₹145 per share; stock has gained over 3,300% since then.
• 2024 Performance: Stock up by 115% in 2024; gained over 280% in the last 12 months.
• Annual Gains: Doubled in value each year for the last three years (185% in 2022, 187% in 2023).
• Technical Indicator: RSI at 77, indicating the stock is in “overbought” territory.
• Government Ownership: Government of India holds an 84.8% stake, valued at over ₹85,000 crore.
• Retail Shareholders: 3.75 lakh small or retail shareholders as of the March quarter.

This information is crucial for students preparing for competitive exams as it provides insights into the financial performance, historical context, and ownership structure of a significant public sector enterprise in India.