Shares of Mazagon Dock Shipbuilders soared nearly 8 percent in early trade on July 3 to hit a 52-week high of Rs 1,342 after the company signed a contract worth Rs 2,725 with the Ministry of Defence.

The contract is for restoring INS Shankush, a submarine of the sub-surface killer (SSK) class. The delivery of the restored submarine is set for 2026.

The Indian Navy also released a statement that INS Shankush will be combat ready, and join the active fleet with its upgraded combat abilities.

The news of the contract lifted volumes in the counter, which further aided the upmove. Around 40 lakh shares of the company changed hands on the exchanges as against the one-week daily traded average of 38 lakh shares.

At 12.26 pm, shares of Mazagon Dock Shipbuilders were trading at Rs 1,324.20, up 6.2 percent on the National Stock Exchange.

Follow our live blog for all the market action 

The stock has also been a multi-bagger, flushing out over 100 percent returns in the past three months. The share price has shot up over 433 percent in the past year.

The sharp jump in the stock in recent times is aided by rising FII (Foreign Institutional Investor) interest in the counter. FIIs have consistently increased their stake in the company from 0.67 percent in the April-June quarter of FY22 to 3.29 percent as of the fourth quarter of FY23.

Much of the bullish sentiment for the stock emerges from its robust order book, strong revenue visibility and attractive valuations. Mazagon Dock Shipbuilders currently holds an order book valued at approximately Rs 1 lakh crore, primarily driven by five advanced destroyers amounting to around Rs 50,000 crore and six conventional submarines worth Rs 43,000 crore.

HDFC Securities highlights that as of March 31, 2023, the company maintains a robust order backlog of Rs 38,754 crore. This backlog is equivalent to 4.95 times its fiscal year 2022-2023 revenues and is primarily attributed to significant projects involving frigates, destroyers and submarines.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.???????????????

Shares of Mazagon Dock Shipbuilders soared nearly 8 percent in early trade on July 3 to hit a 52-week high of Rs 1,342 after the company signed a contract worth Rs 2,725 with the Ministry of Defence.

The contract is for restoring INS Shankush, a submarine of the sub-surface killer (SSK) class. The delivery of the restored submarine is set for 2026.

The Indian Navy also released a statement that INS Shankush will be combat ready, and join the active fleet with its upgraded combat abilities.

The news of the contract lifted volumes in the counter, which further aided the upmove. Around 40 lakh shares of the company changed hands on the exchanges as against the one-week daily traded average of 38 lakh shares.

At 12.26 pm, shares of Mazagon Dock Shipbuilders were trading at Rs 1,324.20, up 6.2 percent on the National Stock Exchange.

Follow our live blog for all the market action 

The stock has also been a multi-bagger, flushing out over 100 percent returns in the past three months. The share price has shot up over 433 percent in the past year.

The sharp jump in the stock in recent times is aided by rising FII (Foreign Institutional Investor) interest in the counter. FIIs have consistently increased their stake in the company from 0.67 percent in the April-June quarter of FY22 to 3.29 percent as of the fourth quarter of FY23.

Much of the bullish sentiment for the stock emerges from its robust order book, strong revenue visibility and attractive valuations. Mazagon Dock Shipbuilders currently holds an order book valued at approximately Rs 1 lakh crore, primarily driven by five advanced destroyers amounting to around Rs 50,000 crore and six conventional submarines worth Rs 43,000 crore.

HDFC Securities highlights that as of March 31, 2023, the company maintains a robust order backlog of Rs 38,754 crore. This backlog is equivalent to 4.95 times its fiscal year 2022-2023 revenues and is primarily attributed to significant projects involving frigates, destroyers and submarines.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.???????????????