Mazagon Dock Shipbuilders stock dropped over 7% on May 30 after the company posted a 51% fall in net profit for the fourth quarter of FY25. The net profit slumped to ₹325.3 crore, down from ₹663 crore in the same period last year.
The average investor? Probably wondering how a defence major bleeds this hard in one quarter—while boasting full-year growth. That’s the paradox of Mazagon Dock right now.
Operating performance told a tougher story. EBITDA for Q4 fell 83% year-on-year, crashing from ₹524 crore to ₹90 crore. Revenue, however, saw a slight rise of 2.3%, touching ₹3,174.4 crore.
So what gives?
Despite the dismal quarter, Mazagon Dock posted a strong performance for the entire FY25. Full-year profit jumped 25% to ₹2,414 crore, and revenue rose 21% to ₹11,432 crore. This isn’t a sinking ship—just one temporarily hit by bad weather.
Still, markets don’t like surprises. At 9:18 AM, shares were down 7.6%, trading at ₹3,485.4 on the NSE.
And yet, hope floats.
Also Read Bajaj Auto Q4 Profit Up 6% Compared to Last Year, Reaches ₹2,049 Crore
₹44,000 Crore Order in the Pipeline?
According to Times of India, the Ministry of Defence may soon approve an estimated ₹44,000 crore deal for 12 mine countermeasure vessels (MCMVs). If granted, this could be a game-changer for Mazagon Dock and India’s naval strength.
These advanced MCMVs are meant to detect and destroy underwater mines—critical for keeping shipping lanes safe and boosting maritime defense.
And that’s where Mazagon Dock could shine brightest.
Investors: Sit Tight or Bail?
The recent stock dip might spook short-term traders, but long-term believers are still up big. Over the past year, Mazagon Dock stock has gained 130%, more than doubling investor wealth. In comparison, the Nifty 50 grew just 10.4% during the same period.
Yes, Q4 was brutal. But given the full-year strength and future order buzz, this might be more of a hiccup than a red flag.
Mazagon Dock had a rough quarter, but don’t miss the forest for the shipwreck. The fundamentals remain strong. One big Navy order, and the tide could turn fast.
Disclaimer:
This article is for informational purposes only and does not constitute investment advice. Please consult a certified financial advisor before making any investment decisions.
Also Read NBCC Announces 29% Surge in Q4 Profit, Reaches ₹176 Crore..
