Mazagon Dock shares surge over 6% after signing letter of intent for 10 multi-purpose hybrid power ships

Shares of state-run Mazagon Dock Shipbuilders Ltd (MDL) rose as much as 6% on Tuesday on strong volumes after it signed a letter of intent (LoI) with a European client.

The company on Monday (October 9) said it has signed a letter of intent (LOI) with a European customer. The LoI outlines a plan to build six firm units and four optional units of 7,500 DWT multi-purpose hybrid power ships.

According to the stock exchange filing, the prices of these vessels will be finalized at the time of signing the official contract.

As of June quarter, government still holds over 84% stake Shipbuilding company. Based on current market prices, the additional government stake in the company is valued at around ₹4,000 crore.

recently, State-run shipbuilders Raised its revenue growth guidance for fiscal 2024. The company now expects revenue growth of 12-15% for the current financial year, whereas earlier it had estimated 10-12%.

In conversation with CNBC-TV18Sanjeev Singhal, Chairman and Managing Director of the company, said that the current order book as of June 30 is Rs 39,000 crore and this order book will continue for the next 4-5 years.

The company’s order book has been falling over the last five years, starting from ₹55,000 crore in fiscal 2019 to ₹39,000 crore currently.

Mazagon Dock had recently signed a master ship repair agreement with the US government. The non-financial agreement is expected to pave the way for voyage repairs of US Navy ships at Mazagon Dock.

Singhal further said CNBC-TV 18 The current capacity utilization stands at 10 submarines and 11 warships together and the requirements in the Indian Navy.

Singhal is also expecting potential revenue opportunities of Rs 2.5 lakh crore from the next normal ship. The total quantity includes 17 Bravo next generation destroyers, submarines, corvettes, patrol ships and some smaller ships.

shares of Mazagon Dock Shipbuilders Limited Its three-year lock-in period ended on Monday, making 4 crore shares or 20% of its outstanding equity eligible for trading. The stock is currently trading 5.3% higher at ₹2,183.50.

Leave a Comment

“The Untold Story: Yung Miami’s Response to Jimmy Butler’s Advances During an NBA Playoff Game” “Unveiling the Secrets: 15 Astonishing Facts About the PGA Championship”