Shares of Mazagon Dock Shipbuilders (MDL) on Friday hit a fresh high of of Rs 2,383, surging 18.9 per cent on the BSE in Friday’s intraday trade after the company signed the Master Ship Repair Agreement (MSRA) with NAVSUP Fleet Logistics Center (FLC) Yokosuka, an entity of the US Government.
This is a non-financial agreement and there are only two shipyards in the country, including the company who have signed MSRA. The agreement is expected to open-up voyage repairs of US Navy Ships at MDL.
Earlier in July, L&T had signed the MSRA with the US Navy. L&T’s Kattupalli Shipyard, near Chennai, a major node in the Southern Defence Corridor, was qualified for undertaking voyage repairs of the Military Sealift Command vessels.
At its recent conference call, Mazagon Dock said it was targeting delivery of the third ship of project 15 Bravo, which is a missile destroyer, sometime end of the second quarter or early third quarter. It has already delivered two vessels, one in 2021 and 2022. Besides, the company management noted that received an order for MRLC for a submarine.
“This is German make submarine, which was pressed into service some 36 years ago. It has come to Mazagon Dock Shipbuilders Limited for a medium refit and life certification. The total order value is approximately Rs 2,700 crore. So, the company is doing well. We have submitted a price bid for six number of AIP fitted submarines under project P75I,” the Mazagon Dock management suggested in August.
Mazagon Dock will hold its Annual General Meeting on September 27. The company has fixed the record date as September 20, Wednesday, for determining the eligible shareholders entitled to receive the final dividend for FY23.
In the past two trading days, the stock of MDL has rallied 29 per cent. Trading volumes on the counter nearly doubled, with a combined around 5.7 million equity shares changing hands on the NSE and BSE till the time of writing of this report. In comparison, the S&P BSE Sensex was up 0.33 per cent at 66,482 at 10:15 AM.
Meanwhile, in the past six months, the stock has zoomed 214 per cent as compared to 10 per cent rise in the S&P BSE Sensex.
MDL is principally engaged in building and repairing of ships, submarines, various types of vessels and related engineering products for its customers. The company, being a defence public sector undertaking (PSU), primarily engages in construction of warships and submarines for Indian Navy. Once delivered, MDL has no control over its products i.e. warships and submarines.
MDL is exploring the possibility for setting up a green field shipyard at its Nhava Yard in a phased manner with short-term and long-term development plans. Short-term development will enable MDL to facilitate the immediate use of the existing infrastructure for shipbuilding and ship repair business, whereas long term development will facilitate the construction of large-size vessels and submarines including major refit and repairs.
To undertake the construction of advanced and next generation vessels, MDL intends to build a New Floating Dry Dock of 12000T capacity.
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