The first important development came last evening, when the company inked a Memorandum of Understanding (MoU) with the National Shipbuilding and Heavy Industries Park Maharashtra Ltd (NSHIPML) to establish a greenfield shipbuilding cluster.
Maharashtra CM Devendra Fadnavis presided over the signing and exchange of the MoU, which has received an in-principle approval for an expenditure of ₹27,500 crore for the project by the National Shipbuilding Mission.
The MoU includes the greenfield shipbuilding industrial cluster at Dighi, Raigad in Maharashtra. The anchor shipyard would be Mazagon Dock Shipbuilders. The shipbuilding capacity would be at least 1.2 million gross tonne per annum.
The MoU will boost the construction of large commercial vessels in Maharashtra while further strengthening shipbuilding capacity and the maritime industry, the CMO Maharashtra posted from its official “X” handle.
On another note, earlier this month, Mazagon Dock Shipbuilders won an order worth 118 crore from the Maharashtra State Electricity Transmission Company Ltd (MSETCL) to supply, install and commission an AI-based comprehensive infrasecure project for five substations. The contract is estimated to be completed in 24 months.
The second important development came earlier this morning, when sources told CNBC-TV18 that the Indian Navy has issued a Request For Proposal (RFP) for seven Project 17B Stealth Class Frigates, in a first of its kind competitive bidding process.
Sources said that the RFP has been issued to Category A shipyards, including the likes of Mazagon Dock, Garden Reach Shipbuilders and Cochin Shipyard. The estimated cost of the Frigates is nearly ₹70,000 crore.The third important development also came this morning when the stock received two initiations from analysts. HSBC initiated coverage on the stock with a “reduce” rating and a price target of ₹1,860, which is the lowest on the street for the Defence PSU, while Anand Rathi also initiated coverage with a “sell” rating and a price target of ₹2,063.
15 analysts have coverage on Mazagon Dock, of which eight have a “buy” rating, two say “hold”, and five have a “sell” rating.
Shares of Mazagon Dock Shipbuilders have given up opening gains to trade below the flat line at ₹2,234.1. The stock is down 10% so far this year.
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