Mazagon Dock share price gains on bagging Rs 1,486 crore contract from ONGC

Mazagon Dock Shipbuilders in focus: Shares of Mazagon Dock Shipbuilders gained as much as 3.28 per cent to hit an intraday high of Rs 4,545.05 per share on Monday, September 9, 2024. 

The uptick in Mazagon Dock Shipbuilders share price came after the company announced that it has been awarded a contract from Oil and Natural Gas Corporation (ONGC) worth Rs 1,486.40 crore.

In an exchange filing, Mazagon Dock Shipbuilders said, “This is to inform that Mazagon Dock Shipbuilders Limited (MDL) has received a Notification of award of contract on  September 5, 2024 from Oil and Natural Gas Corporation Limited (ONGC) for Pipeline Replacement Project 8 Group A (PRP 8 Group A) on EPC reimbursable basis (OBE) at the ceiling price of Rs 1486,40,32,996 (Indian Rupees One Thousand Four Hundred Eighty-Six Crore Forty Lakhs Thirty-Two Thousand Nine Hundred and Ninety-Six only) including all taxes and duties (GST at 12 per cent).” 

According to the order details, Mazagon Dock Shipbuilders will be responsible for Pipeline Replacement Project 8 Group A (PRP 8 Group A) on EPC reimbursable basis (OBE).

Mazagon Dock Shipbuilders Limited (MDL), 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.

MDL's headquarters is located in Mumbai, serving the Western Naval Command of the Indian Navy. 

The company 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 Shipbuilders is Rs 88,664 crore, according to Bombay Stock Exchange (BSE). The company falls under the BSE500 category. 

At 9:49 AM, shares of Mazagon Dock Shipbuilders were trading almost flat at Rs 4,397 per share. In comparison, BSE Sensex was trading 0.05 per cent higher at 81,220.96 levels.