Mazagon Dock Shipbuilders (NSE: Mazdock) was listed on the NSE and BSE on October 12, 2020. In just five years, the company has given a massive return of around 2500% to its investors. Will Mazagon Dock Shipbuilders continue to provide such great returns in the future as well? Let’s explore Mazdock’s future growth potential and Mazdock share price target from 2025 to 2050 in this article
About Mazagon Dock Shipbuilders
Mazagon Dock Shipbuilders Limited is an Indian government-owned shipbuilding company run by the Ministry of Defence, founded in 1934. It is headquartered in Mumbai and is known for manufacturing warships and submarines for the Indian Navy and commercial ships. The company is contributing significantly to India’s defence sector by delivering advanced ships and submarines.
Mazdock Business Model
- Warship and Submarine Manufacturing: The company earns most of its revenue by building warships, submarines, and other defence ships for the Indian Navy.
- Ship Repairs and Maintenance: Mazagon Dock also makes money by repairing and maintaining naval and commercial ships. This ensures a regular flow of income even after ship deliveries.
- Commercial Shipbuilding: Apart from defence projects, the company builds cargo, offshore, and other commercial ships for private and government companies.
- Export of Ships and Submarine Parts: Mazagon Dock exports some of its ships and submarine parts to other countries, generating additional revenue.
- Technical Consultancy and Training: The company provides consultancy services and technical training to shipbuilding and defence companies.
- Modernisation and Upgrades: MDL also earns money by upgrading and modernising old naval ships and submarines to improve their performance.
Mazdock Fundamental Analysis
| Stock Name | Mazagon Dock Shipbuilders Ltd. |
|---|---|
| Market Cap | ₹ 87,386 Cr. |
| 52W High | ₹ 2,930 |
| 52W Low | ₹ 898 |
| Stock P/E | 31.8 |
| Book Value | ₹ 181 |
| Dividend Yield | 0.63 % |
| ROCE | 44.2% |
| ROE | 35.2 % |
| Face Value | ₹ 5.00 |
| Shareholders | Mar 2023 | Mar 2024 | Dec 2024 |
|---|---|---|---|
| Promoters | 84.83% | 84.83% | 84.83% |
| FIIs | 3.29% | 2.38% | 1.55% |
| DIIs | 0.30% | 0.66% | 1.46% |
| Public | 11.57% | 12.12% | 12.16% |
| No. of Shareholders | 1,64,151 | 3,86,330 | 6,89,605 |
Key Factors Driving Mazdock Future Growth
- Strong Order Book & Growing Defence Budget: Mazagon Dock is a leader in shipbuilding. It has received multiple orders from the Indian Navy for warships and submarines. As India’s defence budget grows, more projects are expected, ensuring consistent revenue.
- Government Support & Make in India Initiative: The Indian government is promoting local defence manufacturing, and Mazagon Dock is a key player in this plan, benefiting from more domestic projects.
- Export Opportunities & Foreign Collaborations: Mazagon Dock is exploring international markets for warship exports while working with foreign defence companies to improve technology and build advanced ships.
- Modernisation & New Technology Adoption: Mazagon Dock is upgrading its shipbuilding facilities with modern techniques and automation to increase efficiency, reduce costs, and speed up production.
Pros of Investing in Mazdock
- Strong Revenue and Profit Growth: Mazagon Dock’s revenue has grown at a CAGR of 33%, and its profit has grown at a CAGR of 47% over the last three years.
- Improved Profit Margins: As of December 2024, Mazagon Dock’s TTM operating profit margin has increased to 22% from 10% in March 2023.
- Almost Debt Free: The company is almost debt free with only ₹1 crore in debt as of March 2024, showcasing a strong balance sheet.
- High ROCE and ROE: As of February 2025, the company’s ROE is 35.2%, and its ROCE is 44.2%, reflecting the efficient use of funds to generate profits.
- Increase in FIIs and DIIs Holding: FIIs increased their holding from 1.45% in September 2024 to 1.55% in December 2024. Also, DIIs increased their holding from 1% in September 2024 to 1.46% in December 2024.
- Low PE Ratio compared to Peers: As of February 2025, MAZDOCK is trading at a PE ratio of around 32, which is low compared to its peer companies like Cochin Shipyard and GRSE.
Cons of Investing in Mazdock
- Dependence on Government Contracts: Mazagon Dock is heavily dependent on Indian government contracts, making it vulnerable to policy changes and budget allocations.
- Risk of Overvaluation: Mazagon Dock’s stock is trading at 12 times its book value, indicating an overvaluation and potential risk if the market corrects.
- High Contingent Liabilities: The company has contingent liabilities amounting to ₹37,139 crore, which could pose financial risks if they materialise.
| Years | Target Price |
|---|---|
| Mazdock Share Price Target 2025 | ₹2,800 to ₹3,000 |
| Mazdock Share Price Target 2026 | ₹3,350 to ₹3,900 |
| Mazdock Share Price Target 2027 | ₹4,000 to ₹5,100 |
| Mazdock Share Price Target 2028 | ₹4,850 to ₹6,650 |
| Mazdock Share Price Target 2029 | ₹5,800 to ₹8,600 |
| Mazdock Share Price Target 2030 | ₹7,000 to ₹11,000 |
| Mazdock Share Price Target 2035 | ₹14,000 to ₹34,000 |
| Mazdock Share Price Target 2040 | ₹28,000 to ₹98,000 |
| Mazdock Share Price Target 2050 | ₹1,50,000 to ₹4,50,000 |
Conclusion
Mazagon Dock Shipbuilders has grown a lot in the past five years, giving big returns to its investors. It has strong support from the government, many orders for warships and submarines, and good financial health with high profits and low debt. However, there are some risks, like the high PB ratio, depending too much on government contracts, and high liabilities. While Mazagon Dock has good growth potential, investors should carefully think about both the benefits and risks before investing. For the latest updates, visit Mazagon Dock Shipbuilders official website.
FAQ’s
By the end of 2025, the share price target for Mazagon Dock Shipbuilders is between a minimum of ₹2,800 and a maximum of ₹3,000.
Based on various estimates, the Mazagon Dock Shipbuilders (MAZDOCK) share price target for 2030 is expected to be between ₹7,000 and ₹11,000.
The Mazagon Dock Shipbuilders (MAZDOCK) estimated share price target for 2040 is between ₹28,000 and ₹98,000.
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
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