Mazagon Dock Shipbuilders Limited is India’s premier state-owned shipyard, headquartered in Mumbai. It plays a critical role in building warships and submarines for the Indian Navy, and has also become a major wealth creator in recent years.

Founded in 1934, originally a small dry dock, it has grown now into India’s largest defence shipyard, with 81.2 per cent stake held by the Government of India at this time.

Naval ships, submarines, offshore platforms, tankers, patrol boats, and support vessels include a strong product line of the company. 

The company has built over 806 vessels since 1960, including 31 warships and eight submarines.

In FY2025, the Company’s revenue is ₹11,431 crore, i.e. 1.4 billion, and net income is ₹2,324 crore. 

Having around 6,300 staff members, MDSL’s stock grew 30-fold in the last five years. It means that an investment of ₹1 lakh in 2020 would now be worth about ₹30 lakh.

The company has shown a strong growth in the last five years with Revenue CAGR of 18 per cent and profit CAGR of 38 per cent.

MDSL is expected to build Project-15C destroyers and possibly Next Generation Destroyers, worth ₹70,000–80,000 crore.

Recently, the company has signed an MoU with IIT Bombay to integrate AI, data analytics, and digital transformation into the shipbuilding trade.

Mazagon Dock is central to India’s defence modernisation, building frontline destroyers like the Visakhapatnam-class. The company also constructs Scorpene-class submarines, enhancing India’s underwater capabilities. It expands into offshore engineering, supporting oil and gas platforms too.

The company has new opportunities in the current situation of rising defence budgets, export potential, and digital transformation. On the other hand, the Company has to face some challenges of long gestation periods for projects, dependence on government orders, and global competition.

Brokerage firms currently recommend a cautious 'Buy' or 'Hold' stance on Mazagon Dock Shipbuilders Limited, with moderate upside potential.

HDFC Securities suggests a ‘Buy’ in the ₹2234–2278 range and recommends adding on dips near ₹2030–2070. Their base case fair value is ₹ 2,437, and the bull case is ₹ 2,617, with a 2–3 quarter investment horizon.

Trendlyne reports a consensus target price of ₹ 3,119.33, which implies a 12.12% upside from the recent price of ₹ 2,782.10. While MarketScreener shows evolving analyst sentiment, with some recent revisions in target prices and recommendations indicating short-term volatility.

After a steep rally, some analysts believe the stock is trading near its fair value, prompting cautious upgrades or downgrades.

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