Mazagon Dock Shipbuilders Limited: Comprehensive Stock Analysis Report | Scrolls
- Editor
- Oct 2
- 2 min read
by KarNivesh | 02 October, 2025
Mazagon Dock Shipbuilders Limited (MDL) is one of India’s oldest and most trusted names in shipbuilding. With a legacy that stretches back to 1774, the company has played a vital role in strengthening India’s naval capabilities. Over the years, MDL has built a wide range of ships and submarines for the Indian Navy and other clients, making it a key player in the country’s defense and maritime sector.
In 2024, MDL received the prestigious Navratna status, highlighting its importance and performance among public sector undertakings. Today, it operates in areas such as warships, submarines, commercial vessels, and offshore platforms. With this diversified business model, the company has built a strong reputation both in India and abroad.
Strong Financial Performance
One of the biggest strengths of MDL is its consistent financial growth. In the past five years, its revenue has risen impressively, climbing from ₹4,042 crores in FY2021 to ₹11,432 crores in FY2025. The net profit story is even stronger, growing from ₹514 crores to ₹2,414 crores in the same period. This shows how effectively the company has managed its projects and created value for shareholders.
The company’s earnings per share (EPS) have also grown sharply, which reflects how profitable MDL has been for investors. With a debt-free balance sheet, a healthy cash reserve, and solid profitability ratios, MDL has one of the strongest financial foundations in the industry.
Order Book and Future Outlook
Another positive factor is the company’s order book, which stands at over ₹36,800 crores. This provides clear revenue visibility for the next 4–5 years. Major ongoing projects include stealth frigates, submarines, and Coast Guard vessels. Beyond this, there are huge opportunities such as the P-75I submarine project and next-generation corvette orders, which could add significantly to future growth.
In 2025, MDL also announced its first international expansion move by acquiring a majority stake in Colombo Dockyard, Sri Lanka. This step shows the company’s ambition to grow beyond Indian shores and build a global presence.
Investor Perspective
For investors, MDL has delivered strong returns in the stock market. In the last year alone, the stock gained over 35%. However, its current valuation is considered high compared to industry averages. This means new investors may want to wait for a better entry point, while existing investors can continue holding their shares for the long term.
Key Risks
Like any business, MDL faces some challenges. Since about 98% of its revenue depends on government contracts, policy changes or delays could affect its cash flows. Complex defense projects also come with risks of delays and cost overruns. Moreover, with the stock trading at premium levels, there is always a risk of market corrections.
Conclusion
Mazagon Dock Shipbuilders is a strong and reliable company with a proud history and a promising future. Its robust financials, strategic importance, and strong order book make it a cornerstone of India’s defense sector. While valuations may be high in the short term, MDL remains a long-term wealth creator for patient investors.
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