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Mazagon Dock - Strategic Shipbuilder; Will Continue To Draw Big Orders: ICICI Securities Initiates Coverage

Mazagon Dock - Strategic Shipbuilder; Will Continue To Draw Big Orders: ICICI Securities Initiates Coverage

<div class="paragraphs"><p>Mazagon Dock Shipbuilders Ltd. (Source: Company website)</p></div>
Mazagon Dock Shipbuilders Ltd. (Source: Company website)

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ICICI Securities Report

Mazagon Dock Shipbuilders Ltd. is one of the four strategic defence shipbuilders under the Ministry of Defence.

The company construct/repairs commercial vessels, warships and submarines.

Investment thesis on the company revolves around:

  1. its orderbook at Rs 493.3 billion as of June 2021 end implying a ‘book to bill’ ratio of ~12.3 times with eight warships and three submarines to be delivered to Indian Navy / Coast Guard; and

  2. unmatched (domestic) strategic execution capabilities .

Delay in order accruals poses execution as well as working capital risks for Mazagon Dock Shipbuilders.

Click on the attachment to read the full report:

ICICI Securities Mazagon Dock Initiating Coverage.pdf

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