The stock has gained nearly 20 per cent in the last five sessions, hitting fresh highs every day. On Wednesday, the counter jumped nearly 11 per cent to Rs 307 on NSE.
The recent tailwind for the stock seems to be the successful delivery of a Visakhapatnam class destroyer to the Indian Navy. Mazagon Dock Shipbuilders in a statement said it has delivered the first ship of Project 15B Class Destroyer to the Indian Navy on Oct 28, 2021.
The ship can accommodate a crew of 312 persons, has an endurance of 4000 nautical miles and can carry out a typical 42 days mission with extended mission time in out of area operation.
The shipbuilder is constructing three more destroyers in the same class. The Second Ship of P15B Mormugao is being readied for Harbour Trials. The ship will thereafter commence its Sea Trials. The third ship (Imphal) was launched on 20 April 2019 and is at an advanced stage of outfitting. The fourth ship is under block erection and will be launched within this current financial year, the company said.
Analysts believe a strong order pipeline and increased focus on indigenous development of defence equipment bodes well for the company. They project potential upsides of up to 42 per cent from the last traded price.
According to the Refinitiv database, the consensus rating of three analysts is ‘buy’. The median price target is Rs 377 in 12 months by three analysts. The highest target pegs the stock at Rs 437 and the lowest at Rs 270. Against its peers, it has been rated more favourable as well.
Analysts also expect FY22 revenue to be nearly double of FY21. The company is set to announce the September quarter numbers on November 10.
Even technically, all signals are bullish. A 20-day moving crossover appeared on daily charts on Tuesday.
