Mazagon Dock share price jumps over 5% on order win worth ₹1,145 crore from ONGC | Mint
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Business News/ Markets / Stock Markets/  Mazagon Dock share price jumps over 5% on order win worth 1,145 crore from ONGC
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Mazagon Dock share price jumps over 5% on order win worth ₹1,145 crore from ONGC

Mazagon Dock share price surged 5.4% during Monday's trading session, following the receipt of an order from Oil and Natural Gas Corporation Limited (ONGC) for ₹1,145.10 crore.

Mazagon Dock Shipbuilders share price opened at ₹2,140 apiece on BSE. Mazagon Dock Shipbuilders Ltd share price touched an intraday high of ₹2,166.90, and a low of ₹2,115. Premium
Mazagon Dock Shipbuilders share price opened at 2,140 apiece on BSE. Mazagon Dock Shipbuilders Ltd share price touched an intraday high of 2,166.90, and a low of 2,115.

Mazagon Dock share price jumped 5.4% on Monday's trading session after receiving an order from Oil and Natural Gas Corporation Limited (ONGC) worth 1,145.10 crore. Mazagon Dock Shipbuilders share price opened at 2,140 apiece on BSE. Mazagon Dock Shipbuilders Ltd share price touched an intraday high of 2,166.90, and a low of 2,115. 

According to Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, Mazagon Dock share price has seen a gap up opening however they are not seeing any major traction post opening. Overall, Mazagon Dock stock is forming a base and can expect an upmove in the near term with 2,300 as next resistance and 2,000 as support. 

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“Mazagon Dock Shipbuilders stock is consolidating in a range since last few weeks, which just seems to be a time wise correction within an uptrend. The support is placed at 2,030 and 1,900 and the longer term trend remains positive till above these supports," said Ruchit Jain, Lead Research Analyst at 5paisa.

The contract is for the Part Replacement of Pipeline Project (PRPP), which calls for the installation of approximately 44.4 km of subsea pipelines divided into 19 segments, according to the company's filing. By May 2024, the agreement must be completed.

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“This is to inform that Oil and Natural Gas Corporation Limited (ONGC) has placed a Notification of Award of Contract on December 07, 2023 on Mazagon Dock Shipbuilders Limited for PRPP on turnkey basis at a total lump sum price of 11,45,10,47,012.06 ( Eleven Hundred Forty-Five Crores Ten Lakhs Forty-Seven Thousand and Twelve and Six Paisa only) including all taxes and duties," the company said in an exchange filing. 

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Although defence shipbuilding has been Mazagon Dock's primary business, the brokerage ICICI Direct Research claims that the company was considering expanding into the energy and other civil contracts sectors.

"As this new contract received from ONGC is o n a turnkey basis, margins are expected to be relatively lesser than the existing contracts. With this contract, the order book is estimated to be at about 37000 crore (4.7x TTM revenues), giving healthy revenue visibility over FY24-26E.

Going ahead, timely placement o f the large orders in defence shipbuilding (like new destroyers, frigates & corvettes), ship-repair and submarines (P-75I and additional three kalvari class submarines) segments would be the key developments to watch out for in coming period," said brokerage ICICI Direct Research.

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Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 11 Dec 2023, 11:57 AM IST
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