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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Mazagon Dock Shipbuilders Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 24, 2024, 9:25 pm

Market Cap 80,524 Cr.
Current Price 3,992
High / Low5,860/1,795
Stock P/E32.5
Book Value 325
Dividend Yield0.69 %
ROCE50.6 %
ROE37.8 %
Face Value 10.0
PEG Ratio1.29

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Mazagon Dock Shipbuilders Ltd

Competitors of Mazagon Dock Shipbuilders Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hariyana Ship Breakers Ltd 72.6 Cr. 118240/79.048.4 2370.00 %3.92 %2.22 % 10.0
Reliance Naval & Engineering Ltd 170 Cr. 2.30/ 4.980.00 %%% 10.0
Mazagon Dock Shipbuilders Ltd 80,524 Cr. 3,9925,860/1,79532.5 3250.69 %50.6 %37.8 % 10.0
Cochin Shipyard Ltd 34,182 Cr. 1,2992,979/56038.6 2020.75 %21.6 %17.2 % 5.00
Industry Average38,292.00 Cr1,352.8339.83192.250.36%25.37%19.07%8.75

All Competitor Stocks of Mazagon Dock Shipbuilders Ltd

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales1,1001,4611,1031,2141,5701,5521,3962,2301,7021,8162,0792,1731,828
Expenses1,0271,3691,0601,1441,4851,3511,3192,0571,5851,5201,8682,0011,651
Operating Profit739243708520277174118296211172177
OPM %7%6%4%6%5%13%6%8%7%16%10%8%10%
Other Income861092737496121129136169176232233261
Interest2222221111211
Depreciation18181717171723181818202020
Profit before tax138181297125162304182290267452421383416
Tax %38%18%22%26%19%28%20%25%25%25%24%25%25%
Net Profit8614923193131218145217200337318287313
EPS in Rs4.287.3711.434.606.5010.807.1910.769.9416.7215.7714.2115.52

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,2782,3313,6194,1273,5304,4754,6144,9054,0485,7337,8277,895
Expenses2,0772,2223,4053,9103,4034,3254,3534,6423,8225,2917,0277,040
Operating Profit201109214217126149261263226442801855
OPM %9%5%6%5%4%3%6%5%6%8%10%11%
Other Income532547563760765612664600474420713901
Interest272044143636111596
Depreciation131531443950646960757679
Profit before tax6926397469298486978257586307731,4291,672
Tax %29%35%34%39%37%37%37%46%24%24%25%
Net Profit4944134925685334405174084805861,0731,255
EPS in Rs248.15207.19246.78285.38214.2519.6323.0820.2523.7829.0853.1962.22
Dividend Payout %20%24%20%18%37%56%19%53%30%30%30%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-16.40%15.45%-6.16%-17.45%17.50%-21.08%17.65%22.08%83.11%
Change in YoY Net Profit Growth (%)0.00%31.84%-21.61%-11.29%34.95%-38.58%38.73%4.44%61.02%

Mazagon Dock Shipbuilders Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 9 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:15%
3 Years:33%
TTM:34%
Compounded Profit Growth
10 Years:%
5 Years:29%
3 Years:47%
TTM:97%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:142%
1 Year:96%
Return on Equity
10 Years:%
5 Years:26%
3 Years:30%
Last Year:38%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:32 pm

MonthMar 2012Mar 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital199199199199249224224202202202202202202
Reserves1,3191,6152,2612,1242,3602,1982,5682,3802,7173,1203,9765,3696,352
Borrowings8281790000030126136
Other Liabilities22,75223,64828,40116,38416,36316,50217,63317,88321,67925,90424,70923,21920,940
Total Liabilities24,35225,54430,94018,70718,97118,92520,42520,46524,62829,23728,89328,79127,530
Fixed Assets1231262663685466468108368079651,0248381,501
CWIP387840170988589808087627299
Investments6666666666666
Other Assets24,18425,33430,62918,16418,32118,18719,52019,54223,73528,17927,80127,87525,925
Total Assets24,35225,54430,94018,70718,97118,92520,42520,46524,62829,23728,89328,79127,530

Reserves and Borrowings Chart

Cash Flow

MonthMar 2012Mar 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +288-1,00944265-9668-1631,516684
Cash from Investing Activity +516494392417454348326-1501,420
Cash from Financing Activity +-120-240-603-126-605-160-183-218-448
Net Cash Flow683-755231356-246257-191,1481,655

Free Cash Flow

MonthMar 2012Mar 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow119.0028.00135.00217.00126.00149.00261.00263.00196.00430.00795.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days47627681779011710787644771
Inventory Days5,8755,3153,2395866875145416881,1421,044605411
Days Payable8064331241511533244167041,234836366321
Cash Conversion Cycle5,1164,9443,19051661128024191-4272285162
Working Capital Days-617-735-573-571-604-428-445-311-606-645-528-426
ROCE %37%38%35%28%33%30%28%25%38%51%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters84.83%84.83%84.83%84.83%84.83%84.83%84.83%84.83%84.83%84.83%84.83%84.83%
FIIs1.82%2.06%2.47%3.05%3.29%3.29%3.29%3.69%3.32%2.38%2.44%1.45%
DIIs0.95%0.97%1.15%0.76%0.26%0.30%0.56%0.39%0.43%0.66%0.83%1.00%
Public12.40%12.14%11.55%11.35%11.62%11.57%11.31%11.10%11.42%12.12%11.89%12.71%
No. of Shareholders1,16,7391,18,3541,14,6351,19,2481,58,9871,64,1512,02,8723,08,3723,45,3283,86,3304,77,4786,72,404

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI PSU Fund163,0003.5432.8197,0022024-11-2368.04%
Aditya Birla Sun Life PSU Equity Fund119,2541.612497,0022024-11-2322.94%
Edelweiss Mid Cap Fund108,6600.5121.8797,0022024-11-2312.02%
ITI Small Cap Fund97,0021.0619.5297,0022024-11-230%
Invesco India PSU Equity Fund49,5681.79.9897,0022024-11-23-48.9%
Edelweiss Multi Cap Fund32,4490.566.5397,0022024-11-23-66.55%
Edelweiss Aggressive Hybrid Fund28,2890.545.6997,0022024-11-23-70.84%
Edelweiss Aggressive Hybrid Fund - Plan B28,2890.545.6997,0022024-11-23-70.84%
Motilal Oswal Nifty Midcap 150 Index Fund14,4990.262.9297,0022024-11-23-85.05%
Nippon India ETF Nifty Midcap 15012,8370.252.5897,0022024-11-23-86.77%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)96.0455.4830.2925.4821.07
Diluted EPS (Rs.)96.0455.4830.2925.4821.07
Cash EPS (Rs.)93.8155.6131.6125.4422.11
Book Value[Excl.RevalReserv]/Share (Rs.)309.56236.01191.27170.15151.69
Book Value[Incl.RevalReserv]/Share (Rs.)309.56236.01191.27170.15151.69
Revenue From Operations / Share (Rs.)469.36388.08284.26200.69243.19
PBDIT / Share (Rs.)124.6073.6141.8939.5640.51
PBIT / Share (Rs.)120.4869.8638.2036.6137.10
PBT / Share (Rs.)120.2269.5537.1529.9436.03
Net Profit / Share (Rs.)89.6951.8727.9222.4818.70
NP After MI And SOA / Share (Rs.)96.0455.4830.2925.4823.33
PBDIT Margin (%)26.5418.9614.7319.7116.65
PBIT Margin (%)25.6618.0013.4318.2315.25
PBT Margin (%)25.6117.9213.0614.9114.81
Net Profit Margin (%)19.1013.369.8211.207.68
NP After MI And SOA Margin (%)20.4614.2910.6512.699.59
Return on Networth / Equity (%)31.0223.5015.8314.9715.37
Return on Capital Employeed (%)35.6526.4616.7916.9516.70
Return On Assets (%)6.573.792.052.042.24
Asset Turnover Ratio (%)0.320.260.210.170.23
Current Ratio (X)1.141.081.051.061.10
Quick Ratio (X)0.880.770.740.770.81
Inventory Turnover Ratio (X)0.000.000.000.350.58
Dividend Payout Ratio (NP) (%)23.1119.3329.4830.2146.15
Dividend Payout Ratio (CP) (%)22.1618.1126.2827.0740.26
Earning Retention Ratio (%)76.8980.6770.5269.7953.85
Cash Earning Retention Ratio (%)77.8481.8973.7272.9359.74
Interest Coverage Ratio (X)490.84233.07118.0195.4588.24
Interest Coverage Ratio (Post Tax) (X)354.30165.2281.6070.3343.06
Enterprise Value (Cr.)23322.8692.69-6647.98-3739.980.00
EV / Net Operating Revenue (X)2.460.01-1.16-0.920.00
EV / EBITDA (X)9.280.06-7.87-4.690.00
MarketCap / Net Operating Revenue (X)3.961.710.841.060.00
Retention Ratios (%)76.8880.6670.5169.7853.84
Price / BV (X)6.012.811.251.250.00
Price / Net Operating Revenue (X)3.961.710.841.060.00
EarningsYield0.050.080.120.110.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Mazagon Dock Shipbuilders Ltd as of November 24, 2024 is: 4,020.17

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 24, 2024, Mazagon Dock Shipbuilders Ltd is Undervalued by 0.71% compared to the current share price 3,992.00

Intrinsic Value of Mazagon Dock Shipbuilders Ltd as of November 24, 2024 is: 5,032.06

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 24, 2024, Mazagon Dock Shipbuilders Ltd is Undervalued by 26.05% compared to the current share price 3,992.00

Last 5 Year EPS CAGR: 25.17%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 28.58%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -540.75, which is a positive sign.
  3. The company has higher reserves (2,950.69 cr) compared to borrowings (25.15 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (4.08 cr) and profit (628.25 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 205.50, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Mazagon Dock Shipbuilders Ltd:
    1. Net Profit Margin: 19.1%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 35.65% (Industry Average ROCE: 25.37%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 31.02% (Industry Average ROE: 19.07%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 354.3
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.88
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 32.5 (Industry average Stock P/E: 39.83)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Mazagon Dock Shipbuilders Ltd. is a Public Limited Listed company incorporated on 26/02/1934 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L35100MH1934GOI002079 and registration number is 002079. Currently Company is involved in the business activities of Demolition & site preparation, Electrical, plumbing & other Specialized construction Activities. Company’s Total Operating Revenue is Rs. 5733.28 Cr. and Equity Capital is Rs. 201.69 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Ship - Docks/Breaking/RepairsDockyard Road, Mumbai Maharashtra 400010investor@mazdock.com
https://mazagondock.in
Management
NamePosition Held
Mr. Sanjeev SinghalChairman & Managing Director
Mr. Biju GeorgeDirector
Mr. Vasudev PuranikDirector
Mrs. Jagjeet Kaur Neeru SinghIndependent Director
Mr. Chandu Sambasiva RaoIndependent Director
Mr. Mallikarjunarao BhyrisettyIndependent Director
Mr. Dattaprasad KholkarIndependent Director
Mr. Amit SatijaGovernment Nominee Director

FAQ

What is the latest intrinsic value of Mazagon Dock Shipbuilders Ltd?

The latest intrinsic value of Mazagon Dock Shipbuilders Ltd as on 24 November 2024 is ₹4020.17, which is 0.71% higher than the current market price of ₹3,992.00.

What is the Market Cap of Mazagon Dock Shipbuilders Ltd?

The Market Cap of Mazagon Dock Shipbuilders Ltd is 80,524 Cr..

What is the current Stock Price of Mazagon Dock Shipbuilders Ltd as on 24 November 2024?

The current stock price of Mazagon Dock Shipbuilders Ltd as on 24 November 2024 is 3,992.

What is the High / Low of Mazagon Dock Shipbuilders Ltd stocks in FY 2024?

In FY 2024, the High / Low of Mazagon Dock Shipbuilders Ltd stocks is 5,860/1,795.

What is the Stock P/E of Mazagon Dock Shipbuilders Ltd?

The Stock P/E of Mazagon Dock Shipbuilders Ltd is 32.5.

What is the Book Value of Mazagon Dock Shipbuilders Ltd?

The Book Value of Mazagon Dock Shipbuilders Ltd is 325.

What is the Dividend Yield of Mazagon Dock Shipbuilders Ltd?

The Dividend Yield of Mazagon Dock Shipbuilders Ltd is 0.69 %.

What is the ROCE of Mazagon Dock Shipbuilders Ltd?

The ROCE of Mazagon Dock Shipbuilders Ltd is 50.6 %.

What is the ROE of Mazagon Dock Shipbuilders Ltd?

The ROE of Mazagon Dock Shipbuilders Ltd is 37.8 %.

What is the Face Value of Mazagon Dock Shipbuilders Ltd?

The Face Value of Mazagon Dock Shipbuilders Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Mazagon Dock Shipbuilders Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE