Mazagon Dock Shipbuilders share price jumps 15% this week. Should you buy this defence stock amid US-Iran war?
Mazagon Dock Shipbuilders shares rose nearly 9% on March 6, totaling 15% for the week, driven by a ₹99,000 crore defense contract with the Indian Navy. Contract negotiations have been finalized, and a positive outlook for future orders remains.
Mazagon Dock Shipbuilders shares jumped nearly 9% on Friday, March 6, marking its second consecutive day of gains. For the week, PSU stock has gained around 15% as heightened geopolitical tensions prevailed following the Middle East conflict, driving investor demand for defence stocks.
Alongside the US-Iran war, Mazagon Dock share price has also hogged the limelight due to the widely reported ₹99,000-crore defence contract with the Indian Navy, which the company has now officially confirmed.
The state-owned shipbuilder addressed regulatory inquiries related to recent news that sparked heightened market interest, clarifying the present phase of this substantial defence agreement.
The company has confirmed that the Contract Negotiation Committee (CNC) discussions between the government and Mazagon Dock Shipbuilders have been finalised. This signifies an important step forward in the process of awarding the contract, with the proposal now pending approval from the relevant government authorities.
“In furtherance of our earlier disclosures dated 25.08.2025, 10.09.2025 and 09.01.2026, this is to update that the CNC negotiations between Government and Mazagon Dock Shipbuilders Limited are completed. The proposal has been taken up for approval of the competent authority,” said the company in an exchange filing.
Antique Stock Broking stated today that Mazagon Dock Shipbuilders could soon bounce back as the contract for the Project 75I submarine program is expected to be finalised soon. The brokerage estimates the final contract amount to surpass the previously estimated ₹70,000 crore. It also expects the order for three additional submarines to be finalised by the first half of FY27.
The brokerage maintained a 'Buy' recommendation with Mazagon Dock share price target of ₹3,407, based on a price-to-earnings multiple of 42 times core earnings for FY28.
“The medium-term order pipeline remains promising. While revenue growth may remain subdued in FY27E, it should accelerate in the subsequent years, supported by a larger order book. We remain positive on the stock, given the potential for large order wins, the company's strong position in submarine construction, and the government's focus on developing the domestic shipbuilding ecosystem,” said the brokerage house in its report.
Antique mentioned that Mazagon Dock's finalisation of the P-75I contract could greatly increase Mazagon's order book in the near term, which currently stands at ₹23,700 crore.
Mazagon Dock Shipbuilders share price today
Mazagon Dock Shipbuilders share price today opened at ₹2,398.95 apiece on the BSE. The stock touched an intraday high of ₹2,559 and an intraday low of ₹2,373.55.
According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, Mazagon Dock Shipbuilders share price has seen strong traction this week, gaining around 15% backed with strong volumes. “With this, the prices are moving back above key moving averages, and the overall trend has turned positive. Traders should maintain a positive bias expecting a further move towards 2,700 levels; on the flip side, 2,400 is seen as a support.”
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 decision.
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