Mazagon Dock Shipbuilders' shares rose 7.36%, reaching a 52-week high of Rs 4269.75 a share on the BSE in early morning trading on Wednesday. The stock fell to a 52-week low of Rs 1,223.05 on June 27, 2023.
However, today's increase in stock price occurred after the business received "Navratna" status from the Department of Public Enterprises, making it India's 18th Public Sector Undertaking (PSU) to receive this designation. With its recent financial performance, the firm has entered the ranks of other Navratna Indian companies, including NMDC, RVNL, IRCON, and IREDA, among others.
Mazagon Dock Shipbuilders Limited
Mazagon Dock, being a Navratna firm, can undertake investments of up to Rs 1,000 crore without obtaining national government clearance. These corporations can also invest up to 30% of their net worth in a single year, provided it does not exceed Rs 1,000 crore.
Furthermore, Navratna designation allows Mazagon Dock to form joint ventures, alliances, and establish subsidiaries abroad, giving them more freedom and autonomy in their commercial operations.
To acquire Navratna status, a corporation must meet stringent financial criteria for three consecutive years. This includes generating a net profit of more than Rs 5,000 crore per year, sustaining an average yearly revenue of Rs 25,000 crore, or exhibiting an average annual net worth more than Rs 15,000 crore.
Mazagon Dock Shipbuilders, the state-run ship maker, showed strong financial increase in the March quarter over the previous year. The company's revenue increased by 50% to Rs 3,103.6 crore from Rs 2,078.6 crore in the same period last year. Net profit more than doubled to Rs 663 crore, up from Rs 326 crore a year earlier. At 09:48 PM, the company's share price had reduced some of its gains and was 4.49 percent higher at Rs 4155 per share on the BSE. In comparison, the BSE Sensex was trading flat, 0.05 percent higher. The company's shares are currently selling at a 43.46 price-to-earnings multiple, with an earnings per share of Rs 91.50.
