Mazagon Dock hits all-time high after winning Navratna status; multi-bagger stock gains 255% in 1 year
Navratna status will enable Mazagon Dock to carry out substantial investments of up to Rs 1,000 crore without needing the centres approval.
Mazagon Dock Shipbuilders shares in Wednesday’s trade hit an all-time high price of Rs 4269.75, gaining over 7 per cent, as the centre granted the coveted ‘Navratna’ status to the state-run shipbuilding company.
On the previous day, shares of the company ended marginally higher by 0.31 per cent at Rs 3,976.55 apiece on the BSE.
The company in an exchange filing post market hours said that the Department of Public Enterprises (DPE) has approved the proposal for grant of Navratna status to Mazagon Dock Shipbuilders Limited.
The centre accords the navratna status to top-tier PSUs and with this status in place, these organisations can carry out substantial investments of up to Rs 1,000 crore without needing the centre's approval.
Further, earlier on Tuesday, the company clarified on the media reports of its Rs 35,000 crore deal with the Ministry of Defence that the PSU has submitted the bid for the three Additional submarines under project P75 which is an activity in the normal course of business.
Submission of bid does not result into automatic bagging of an order, therefore, is not required to be informed under Regulation 30 of SEBI (LODR) Regulations, 2015, noted the company’s exchange filing.
Earlier in April this year, Indian Renewable Energy Development Agency Ltd (IREDA) was granted the 'navratna status' by the Department of Public Enterprises.
Mazagon Dock’s Q4 results
The company’s net profit for the March quarter of FY24 increased 103 per cent to Rs 662.97 crore, while net sales increased by 51 per cent to Rs 3,452.37 crore. The company is a debt free entity with order book as of December 31, 2023 at Rs 38,389 crore.
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