Mazagon Dock Shipbuilders stock surges over 8.5% as board to consider stock split
Mazagon Dock Shipbuilders' shares rose nearly 8.7% to ₹4,608 after announcing a potential stock split and interim dividend. The board will meet on October 22, 2024, to discuss these proposals. The shares have zoomed over 17% in the last 9 trading sessions.
Shares of Mazagon Dock Shipbuilders, a leading defence public-sector shipyard under the Ministry of Defense (MoD) in India, surged nearly 8.7% to ₹4,608 apiece on Friday, October 18 after the company said its board will consider a stock split and interim dividend for the financial year 2024-25 at its upcoming board meeting.
The Board of Directors is scheduled to meet on Tuesday, October 22, 2024, to discuss and potentially approve these proposals.
'A meeting of the Board of Directors of Mazagon Dock Shipbuilders Limited is scheduled on Tuesday, 22 October 2024, inter alia, to consider a) Declaration of Interim Dividend for the financial year 2024-25. b) Sub-division/split of equity shares of the company pursuant to the provisions of Section 61(1)(d) of the Companies Act, 2013," the company said in an exchange filing.
Furthermore, the company has set Wednesday, October 30, 2024, as the record date for the potential payment of an interim dividend for the financial year 2024-25, subject to board approval.
The company's shares have been making headlines recently due to several positive developments. On October 10, it secured an order valued at ₹1.22 billion from Maharashtra State Power Generation (MAHAGENCO). In late September, the company announced the commencement of production for its first multipurpose cargo vessel (MPV) for Navi Merchants in Denmark.
Furthermore, during the same month, the company won a contract worth ₹14.86 billion from Oil and Natural Gas (ONGC) for a subsea pipeline replacement. Earlier in September, India’s defence ministry approved military equipment purchases totalling ₹1.45 trillion ($17.27 billion).
Recent recovery in shares, yet still over 20% down from recent high
The company's shares have experienced a recovery recently, gaining 17.14% over the last nine sessions. However, this rebound has not been sufficient to bring the stock close to its recent peak.
After a sustained rally from March 2023 to July 2024, the stock faced profit booking in the following months and is currently trading 21.6% below its all-time high of ₹5,859 per share, reached in July.
Mazagon Dock is a prominent public-sector defence undertaking under the Ministry of Defence (MoD), specialising in shipbuilding, submarine construction, and various engineering products. Since its establishment in 1934, the company has delivered 802 vessels, including 28 warships and 7 submarines, as highlighted in the Q1 FY25 earnings report.
In June, the company was awarded Navratna status by the Department of Public Enterprises (DPE).
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