Mazagon Dock share pops 5% on Rs 1,990 crore-deal with Ministry of Defence

Mazagon Dock share price: Shipbuilding company Mazagon Dock Shipbuilders shares were buzzing in early trade as the scrip rose up to 4.60 per cent to hit an intraday high of Rs 2,370.50 per share on Tuesday, December 31, 2024. 

 

However, at 10:04 AM, Mazagon Dock share pared its initial gains and was trading 1.98 per cent lower at Rs 2,221.40 per share. By comparison, BSE Sensex was trading 0.65 per cent lower at 77,737.79 levels.

 

The initial rally in the Mazagon Dock share was fuelled after the company secured a deal worth Rs 1,990 crore from the Ministry of Defence. 

 

The defence ministry said on Monday it had signed a Rs 1,990 crore ($233 million) contract with Mazagon Dock Shipbuilders for technology that allows submarines to stay underwater for longer. READ MORE

 

About Mazagon Dock 

 

Mazagon Dock Shipbuilders, established in 1774 and based in Mumbai, is one of India's leading shipbuilding firms. Since 1960, the company has launched 801 vessels, including a diverse range of warships, submarines, cargo and passenger ships, and offshore platforms.

MDL specialises in the defence sector, having constructed 802 vessels to date. This includes 28 warships, such as advanced destroyers and missile boats, as well as 7 submarines. The company's portfolio also includes Naval Platforms like Frigates, Destroyers, and Missile Boats, along with Merchant Ships and Oil Sector equipment such as Offshore Platforms and Jack-up rigs.

 

With an infrastructure capable of simultaneously handling 11 submarines and 10 warships, MDL has established a dedicated "Make in India" Department to focus on indigenisation. 

 

Approximately 75 per cent of the company's content is dedicated to warship construction, leveraging indigenous materials to significantly cut costs.

 

Mazagon Dock's headquarters is in Mumbai, serving the Western Naval Command of the Indian Navy. It operates several shipbuilding facilities, including the North Yard, South Yard, Nhava Yard, and Anik Yard, with a specialised Submarine Construction Yard at the East Yard. The Alcock Yard, situated above the North Yard, and additional land adjacent to the South Yard support various construction activities, including modular workshops for shipbuilding, cradle workshops for submarines, a Goliath Crane, and a Wet Basin.

 

The market capitalisation of Mazagon Dock is Rs 88,945.29 crore, according to BSE. The company falls under the BSE 200 category.