Mazagon Dock Share Price: Stock surges 6% after Rs 1,070 crore deal with govt

Mazagon Dock Share Price NSE, BSE: Shares of  Mazagon Dock Shipbuilders surged over 6 per cent in the opening trade on Thursday i.e. January 25. The counter opened with a gain of 4.15 per cent today and went on to hit a high of Rs 2475 on the BSE. This is a surge of around 6.44 per cent against the previous closing of Rs 2325.35.

The scrip has been gaining for the last two days and is 3.11 per cent away from the 52-week high of Rs 2490. The 52-week low of the share is Rs 612.80.

The surge in share price of of  Mazagon Dock Shipbuilders, which has a market cap of Rs 48,624 crore, came after the company signed a contract worth RS 1,070 crore with the Ministry of Defence. The deal is for the delivery of 14 Fast Patrol Vessels (FPVs).

"This is to inform that Mazagon Dock Shipbuilders Limited (MDL) has signed a contract with Acquisition wing of Ministry of Defence for Construction and Delivery of Fourteen (14) Fast Patrol ‘Vessels (FPVs) for Indian Coast Guard (ICG) on 24 January, 2024," the company said in an exchange filing.

The first vessel delivery is expected in TO + 24 months and delivery of subsequent vessels will be done at intervals of three months.

"First vessel delivery is TO + 24 months and delivery of order(s)/ contract(s) is to be | subsequent vessels at intervals of three (03) months, executed where TO is the date of release of advance payment by the Buyer to the Seller," the company said.

According to Zee Business panellist Vikas Sethi, all ship-building companies are doing extremely well these days.