Mazagon Dock Shipbuilders Ltd (MDL), India’s leading defence shipyard, has announced its first stock split in a 1:2 ratio. Each equity share with a face value of ₹10 will now be split into two shares with a face value of ₹5 each. The record date for determining eligible shareholders is December 27, 2024.
This move aims to make the shares more affordable and improve market liquidity. The decision follows the company’s stock reaching a high of ₹5,860 in July 2024 before a market correction.
About Mazagon Dock Shipbuilders Ltd
Mazagon Dock Shipbuilders Ltd, established in 1774, is India’s largest manufacturer of warships. The company builds warships, submarines, and offshore platforms for the Indian Navy and other defence organizations. In June 2024, it earned the prestigious Navratna status, cementing its importance as a globally recognized public-sector enterprise.
Since 1960, MDL has delivered over 800 vessels, including advanced combat ships and cargo vessels. Its strong industry presence and strategic partnerships make it a critical player in India’s defence infrastructure.
Key Financial Highlights:
Q2FY25 (Year-over-Year Growth):
- Net Sales: ₹2,756.8 crore (+51%)
- Net Profit: ₹552.8 crore (+82%)
H1FY25 (Cumulative Results):
- Net Sales: ₹5,113.9 crore (+28%)
- Net Profit: ₹1,218.7 crore (+106%)
FY24 (Annual Results):
- Net Sales: ₹10,568.05 crore (+24%)
- Net Profit: ₹1,936.97 crore (+73%)
The company’s revenue for FY24 rose by 24% to ₹10,568.05 crore, while net profit surged by 73% to ₹1,936.97 crore. MDL operates with a debt-free balance sheet and an order book worth ₹39,872 crore as of September 2024, ensuring strong revenue potential in the future.
Ownership and Market Outlook
As of September 2024, the Government of India owns 84.83% of the company, well above the minimum public shareholding requirement of 75%. The stock has delivered impressive returns, rising 130% in the past year and an extraordinary 1,600% over three years.
MDL’s zero-debt status, strong order book, and the stock split aim to attract more investors and broaden shareholder participation. With these strengths, the company continues to be a promising player in India’s growing defence sector.
Disclaimer: This article is for informational purposes only and should not be considered as investment advice.
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