Stock to buy for long-term: Progressive Shares sees 51% upside in Mazagon Dock Shipbuilders share price

Mazagon Dock Shipbuilders share price rallied over 4% on Thursday amid heavy volumes. Mazagon Dock shares gained as much as 4.29% to ₹2,716 apiece on the BSE.

The Navratna defence PSU Mazagon Dock Shipbuilders announced the Keel Laying Ceremony of the first ship of a project on April 2. The company commenced the production activity for Multi-Purpose Vessel (MPV) - Yard 21001 for M/s Navi Merchants Denmark on 24 September 2024.

As per the contract signed between Mazagon Dock Shipbuilders and M/s Navi Merchant, the defence PSU will design, build and deliver Six Multi-Purpose Vessels. The contract price of each vessel is approximately $14 million.

“The overall length of vessel is 116.2m with dead weight 7500T. The vessel will be capable of attaining the speed of not less than 11.0 knots with shaft generator power take off of about 85kW. The vessel will be built under survey and certification with rules of Det Norske Veritas (DNV) classification society,” Mazagon Dock Shipbuilders said in a regulatory filing on April 2.

The vessel is scheduled for delivery in Apr 2026, it added.

Mazagon Dock Shipbuilders Stock Price Outlook

Mazagon Dock Shipbuilders share price has the potential to rally by up to 51% in a 9-12 months timeframe, according to Aditya Gaggar, Director of Progressive Shares.

“After consolidating for more than 7 months, Mazagon Dock Shipbuilders stock price has given a breakout from a Bullish Pennant and Pole Formation. The +DMI stands well above -DMI, and a reading of 69.71 in ADX indicates the presence of a strong uptrend,” Gaggar said in a report.

Moreover, Hidden Bullish Divergence was spotted in the RSI indicator, while 12 MMA (Monthly Moving Average) is acting as a strong support, he added.

He recommends a ‘Buy’ call on Mazagon Dock Shipbuilders shares at current market price, or at a decline upto ₹2,528, with a closing stop loss of ₹2,060. He has a target price range of ₹3,269 - ₹3,934 for the stock with a horizon of 9-12 months. The upper-end of the Mazagon Dock share price target implies an upside potential of 51% from Wednesday’s closing price.

Mazagon Dock Shipbuilders share price has surged 25% in one month, and more than 20% on a year-to-date (YTD) basis. In the past six months, the defence stock has rallied 32%.

Mazagon Dock shares have delivered multibagger returns of 142% in one year and a whopping 2,050% in three years.

At 12:15 PM, Mazagon Dock Shipbuilders shares were trading 3.68% higher at ₹2,699.75 apiece on the BSE. 

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